MUMBAI, DEC 5: Gold prices slumped to a six-and-a-half-year low with the fall of Rs 55 per ten grams in the prices of standard gold on the bullion market here today. The recent sharp erosion has led gold prices to touch a low level prevailing on July 2, 1991, when the rupee was devalued by 20 per cent against major currencies in two instalments.Dealers said the seasonal buyers kept away while the upsurge in rupee value to Rs 38.80 - after its roller coaster ride to a low of Rs 39.92 in intra-day trading on December 2 - has boosted gold imports.Prices in the domestic markets were largely affected by the weak price trends in the international markets where gold fell to its 12-1/2 year low of $ 289.35 per ounce at the afternoon fixing in London yesterday and in New York it touched a low of $ 286.50 in December forwards. The sharp plunge in the international markets was prompted by news that Argentina had sold 124 tonnes of gold earlier this year while in US there was increased hedging by an Australian producer in the last two days, which affected the price trend. The fall in the cost of gold biscuit of ten-tola (.999 purity) was by Rs 800 to Rs 45,800.
