Gold, silver prices plunge on weak global trend

Gold and silver tumbled on the bullion market on Monday by Rs 60 and silver by Rs 170 each on the back of dollar strengthening to a 13-month high against the euro amid a weak global trend.

Standard gold fell by Rs 60 at Rs 12,880 per 10 gram and silver ready dropped by Rs 170 at Rs 18,600 per kg on Selling pressure gathered momentum after gold in London fell for a fifth session as the dollar strengthened, curbing demand for the metal as an alternative investment.

Market experts said the metal lost its demand among retail customers and moved along with the global trend.

They said the ongoing auspicious fortnight of Navratras and the oncoming Diwali failed to lift prices of the metals. The dollar rose to a 13-month high against the euro as the deepening credit crisis prompted European governments to pledge bailouts for troubled banks.

Standard gold and ornaments fell by Rs 60 each at Rs 12,880 and Rs 12,730 per ten gram respectively. Sovereign was unchanged at Rs 10,500 per piece of eight gram.

Silver ready dropped by Rs 170 at Rs 18,600 per kg and weekly-based delivery lost Rs 220 at Rs 18,740 per kg. Silver coins lost Rs 100 at Rs 28,200 for buying and Rs 28,300 for selling of 100 pieces.