Gold falls sharply by Rs 900, silver by whopping Rs 7,000. Bubble bursts

Business

oi-Monika

By Monika Nihalani

Published: Saturday, September 24, 2011, 12:44 [IST]

Gold and silver went on a free fall ride on Saturday, slid more than Rs 900 and Rs 7,000 respectively. Gold, internationally slipped more than US $100 on a Friday, followed by gray metal, silver which fared as badly as yellow metal.

The precious metal lost its charm the most in Mumbai, with 24 carat gold is at around Rs 28,210 per 10 grams, followed by Chennai at Rs 28,440 per 10 grams.

While, 22 carat gold fell to Rs 25,620 per 10 grams in Mumbai and in Delhi it declined to Rs 25,710 per 10 grams.

Precious metals on futures trade also plunged sharply tracking global sell-off.

It sent a shock-waves over the commodities street when gold in global market fell below US $1,700 an ounce, the biggest weekly drop since 2008.

At 12.00 pm, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) opened at low at Rs 26,400 per 10 grams and was trading in the range of Rs 26,550 – Rs 26,600 per 10 grams, made intraday lows of Rs 26,293 per 10 grams.

And, gold for far month April delivery opened low at Rs 27,610 per 10 grams and was trading in the range of Rs 27,481 – Rs 27,545 per 10 grams.

Silver also followed the suit.

The most actively traded silver contract, for December delivery opened low at Rs 52,056 per kg, recovered a bit later and was trading in the range of Rs 53,226 – Rs 53,239 per kg same time.

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