Gold suffers biggest fall of the year

Gold suffered the biggest fall of the year to trade below Rs 18,000 per ten gram.

Gold suffered the biggest fall of the year to trade below Rs 18,000 per ten gram in the national capital as stockists sold the precious metal on weak global cues and jewellers refrained from buying at existing rates.

Gold prices tumbled by Rs 510 to Rs 17,760 per ten gram as the yellow metal lost its sheen in overseas markets as a safe haven investment on a firming dollar.

The selling pressure mounted with the commodity heading for its biggest decline since July as a rising dollar spurred investors to sell bullion after a record rally. And jewelers avoided any purchases,waiting for more correction in prices.

Gold prices,which normally move in tandem with the global trend,dipped below record high levels of USD 1,226 to trade near USD 1,162.40 an ounce on reports of a better-than-expected US job data.

Silver prices also recorded a free-fall on frantic selling by stockists amid a fall in demand from industries.

Silver weekly-based delivery dipped by Rs 840 to Rs 28,660 per kg while silver ready held steady at Rs 29,000 per kg on speculators covering their pending long positions.

Silver coins fell by Rs 200 to Rs 34,400 for buying and Rs 34,500 for selling of 100 pieces.

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Standard gold and ornaments remained under selling pressure and plunged further by Rs 510 each to Rs 17,760 and Rs 17,610 per ten gram respectively. Sovereign followed suit and fell by Rs 200 to Rs 14,100 per piece of eight gram.