Gold dips below 28,000 mark, silver sheds Rs5,000 on global cues

Tracking global markets, precious metals plunged in the national capital today with gold losing Rs700 to Rs27,340 per 10 grams and silver slumping by Rs5,000 per kg for the second day in a row.

Gold dipped below the psychological Rs28,000 level as stockists reduced their positions in tandem with a steep fall in precious metals in global markets.

On hectic selling by stockists and reduced offtake by industrial units on the back of a weak global trend silver lost Rs5,000 to Rs54,000 per kg.

Dealers said that selling pressure in the precious metals remained intact as gold fell on investor sales following routs in global equity and commodity markets.

Gold in global markets, which normally sets the price trend on the domestic front, fell sharply by $101.90, or 5.9 per cent to settle at $1,639.80 an ounce on the Comex.

On the domestic front, gold of 99.9 and 99.5 per cent purity recorded a steep fall of Rs700 each to Rs27,340 per 10 grams and Rs27,190 per 10 grams, respectively.

Gold yesterday closed at 28,040 per 10 grams in the bullion market in the national capital.

Sovereign followed suit and tumbled by Rs1,500 to Rs21,200 a piece of 8 grams.

In a similar fashion, silver ready nosedived by Rs5,000 to Rs54,000 per kg. It had plunged by Rs5,500 yesterday.

Silver weekly-based delivery plummeted by Rs5,005 to Rs53,760 per kg, after losing Rs5,535 in the previous session.

Silver coins also recorded a steep fall of Rs4,500 to Rs61,000 for buying and Rs62,000 for selling of 100 pieces.