Mumbai: Gold prices plunged to a nearly one-year low at the domestic bullion market here today, following heavy unwinding by jewellery stockists and speculators. Silver also dropped sharply due to frantic speculative unwinding amid decreased industrial demand.
Domestic sentiment got spooked by a sharp fall in yellow-metal overseas after strong US economic data backed by some technical selling as well as slowdown in Chinese demand blunted its investment-hedge appeal, a bullion trader said. Standard gold (99.5 purity) tanked by Rs 360 to conclude at Rs 27,175 per 10 grams from Tuesday's closing level of Rs 27,535.
Pure gold (99.9 purity) also slumped by similar margin to finish at Rs 27,320 per 10 grams from Rs 27,680. Silver (.999 fineness) shed Rs 455 to end at Rs 41,065 per kg from Rs 41,520 yesterday.
Globally, the shiny metal settled at USD 1,265.50 an ounce on the Comex division of the NYMEX late yesterday, its lowest level in about three-and-a-half months, while silver July contract eased to USD 19.07 an ounce.