Gold price plunges to 20-month low,silver slides too

Steady selling by stockists and investors has hit prices despite positive global cues.

Gold prices continued their southward journey,hitting nearly 20-month low at the bullion market here today on steady selling by stockists and investors despite positive global cues.

Silver also reflected the weak sentiment and plunged below the Rs 46,000 per kg mark on speculative selling pressure.

Standard gold of 99.5 per cent purity declined by Rs 220 to end at Rs 25,680 per 10 gm from Tuesday’s closing level of of Rs 25,900.

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Pure gold of 99.9 per cent purity also fell by a similar margin to close at Rs 25,820 per 10 grams from Rs 26,040 previously.

Silver ready (.999 fineness) dipped by Rs 875 to finish at Rs 45,485 per kg from Rs 46,360 yesterday.

“Overseas concerns continue to linger over the yellow metal here though good demand is expected due to falling prices and marriage season,” a dealer said.

On the global front,gold rose on higher physical buying in Asia,but investors were still nervous shaken by the recent heavy losses due to speculation that Cyprus’ plan to sell bullion reserves to raise cash may be followed by other debt-ridden euro zone nations.

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In Europe,spot gold was bid higher at USD 1,383.15 an ounce (about 28.35 grams) in early trade and silver was largely unchanged at USD 23.39 an ounce.