New Delhi, Feb 4: Prices of gold tumbled by Rs 600 while silver fell sharply by Rs 1,590 a kg on the bullion market here today due to heavy selling by stockists which took cues from weak global markets. Gold plunged by Rs 600 to trade at Rs 28,040 per ten grams.
Silver dropped by Rs 1,590 to Rs 55,650 per kg triggered by a steep fall in overseas markets.
Selling pressure gathered momentum after gold in New York slumped the most in five weeks as the US economy added more jobs in January than forecast, signaling economic growth that may reduce the need for the Federal Reserve to expand stimulus measures.
Gold in global markets, which normally set price trend on the domestic front, recorded a sharp fall of 32.50 dollar to 1725.90 dollar an ounce and silver lost 2.01 per cent to 33.67 dollar an ounce in New York last night.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 600 each to Rs 28,040 and Rs 27,900 per ten grams respectively. Sovereign shed Rs 50 to Rs 23,350 per piece of eight gram.
Similarly, silver ready plunged by Rs 1,590 to Rs 55,650 per kg and weekly-based delivery by Rs 575 to Rs 56,125 per kg. Silver coins also dropped by Rs 2,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces. In Mumbai, standard gold of 99.5 per cent purity plunged by Rs 435 to end at Rs 27,665 per 10 grams today, as against Friday's close of Rs 28,100.
Pure gold of 99.9 per cent purity also fell by a similar margin to close at Rs 27,795 per 10 grams, compared to Rs 28,230 per 10 grams previously.
Silver ready (.999 fineness) dropped by Rs 455 per kg to conclude at Rs 55,505 per kg from an overnight close of Rs 55,960.
In the overseas market, gold fell in New York trade after a four-session rally following better-than-expected US job data along with positive macroeconomic indicators, reducing investor demand for the yellow metal.
Gold for April delivery declined by USD 19 to settle at USD 1,740.30 an ounce on the Comex division of the NYMEX late yesterday.
In a similar fashion, March contract silver lost 43 cents to finish at USD 33.75 an ounce.