Mumbai: Gold prices plunged sharply and closed below the psychological Rs 27,000 benchmark on the bullion market here following frantic unwinding by stockists and speculative traders marred by heightened global volatility.
Silver also endured heavy selling pressure to settle below the Rs 38,000 level amid sluggish industrial demand.
Domestic sentiment turned extremely bearish and volatile after the yellow-metal tanked to six-weeks low in worldwide trade as a slew of stronger than expected US macro data fueled speculation that the Federal Reserve might raise interest rates sooner than expected.
The bullion market was closed on Friday for the “May Day” holiday.
Standard gold (99.5 purity) tumbled by Rs 370 to end at Rs 26,635 per 10 grams from Thursday's closing level of Rs 27,005.
Pure gold (99.9 purity) also slumped by a similar margin to conclude at Rs 26,785 per 10 grams as compared to Rs 27,155.
Silver (.999 fineness) tanked by Rs 585 to finish at Rs 37,500 per kilo against Rs 38,085 previously.
On the global front, gold for June delivery crashed to settle at USD 1,174.50 an ounce on the Comex division of the NYMEX late yesterday, while silver July contract closed at USD 16.135 an ounce.