Gold lost a whopping Rs 225 to trade at Rs 16,850 per ten grams in the bullion market on frantic selling sparked by negative global cues,while silver also nosedived by Rs 650 to Rs 27,400 per kg. Standard gold and ornaments dropped by Rs 225 each to Rs 16,800 and Rs 16,650 per ten grams,respectively. Sovereign also lost Rs 25 to Rs 14,025 per eight-gram piece. Marketmen said selling pressure aggravated following reports that gold in New York last night plunged to its lowest in two months as a stronger dollar reduced demand for the precious metal as an alternative asset. The US currency rose as much as 0.5 per cent against a basket of six major currencies,including the euro. Gold in the overseas markets,which normally the set price trend on the domestic front here,dropped by USD 27 to USD 1,133.30 an ounce,the biggest drop since February 4. "Reports of a weakening global trend came at a time when the market is passing through heavy selling of scrap gold in local and overseas markets at existing levels," Delhi-based jeweller Rakesh Anand said. He said the precious metal also could not be transported due to air-freight disruptions caused by the ash cloud formed from a volcano that erupted in Iceland,further creating high stocks,which pulled down prices. Similarly,silver ready plunged by Rs 650 to Rs 27,400 per kg and weekly-based delivery by Rs 815 to Rs 27,050 per kg. Silver coins also fell by Rs 100 to Rs 33,500 for buying and Rs 33,600 for selling of 100 pieces.
