Gold & Silver Tumbles in Market on Global Cues

Both the precious metals, gold and silver, tumbled sharply on the bullion market on Friday on fresh stockists offerings triggered by steep fall in global markets. Lack of industrial demand coupled with sharp fall in New York market were the main reasons behind fall in white metal prices. Standard gold (99.5 purity) dropped by Rs 155 per ten grams to Rs 10,180 from Rs 10,335 previously. Pure gold (99.9 purity) also fell to Rs 10,230 from Rs 10,385 yesterday. Silver ready (.999 fineness) slumped by Rs 390 per kilo to Rs 18,870 from Rs 19,260. Gold and silver futures fell sharply in New York on Thursday as the dollar flexed its muscles following big rises in US retail sales and the Producer Price Index, trimming expectations for further US rates cuts, traders said. February gold tumbled by $14.80 to $804 an ounce on the Comex division of the New York Mercantile Exchange. March silver lost 58.8 cents to $14.237. In Hong Kong, gold ended lower at $799.40/800.10 per ounce as against $810.60/811.30 yesterday and in London, it was fixed lower in the morning at $796.25 per ounce as against $800.70 per ounce previously.