Gold futures tumble 3.82 pc; Silver headed for biggest daily drop in 3 years

New Delhi: Gold witnessed steepest fall of Rs 1,540 to Rs 25,800 per 10 gm in opening trade in Delhi market, tracking weak foreign markets.

At the Multi Commodity Exchange, gold for delivery in October month tumbled by Rs 1,021, or 3.82 percent to Rs 25,695 per 10 grams in a business turnover of 9,941 lots.

Similarly, the metal for delivery in December plunged by Rs 1,011, or 3.74 percent to Rs 26,040 per 10 grams in 1,488 lots.

Market analysts said the sharp fall in gold futures was mostly attributed to a weak global trend amid speculation that European governments will struggle to contain the region’s debt crisis and strengthening dollar, reducing its appeal as alternative investment.

Spot silver fell 12 percent to $27.3/oz in trade today. The metal is headed for its biggest daily drop in nearly 3 years.

In India, silver futures tanked by Rs 3,224, or 6 percent, to Rs 50,502 per kg in trade today as speculators engaged in reducing their positions after prices of the precious metal tumbled by over 8 percent in the Asian region.

At the Multi Commodity Exchange, silver for delivery in December plunged by Rs 3,224, or 6 percent, to Rs 50,502 per kg, with a business turnover of 203 lots.

Similarly, the metal for delivery in far-month March declined by Rs 3,303, or 6 percent, to Rs 51,752 per kg, with a trade volume of 11 lots.

Analysts attributed the steep fall in silver prices in futures trade to a weakening trend in the Asian region on speculation that European governments will find it difficult to contain the region’s debt crisis and reverse gains registered by the US dollar against the euro, eroding the demand for precious metals as an alternative investment.

PTI