Gold, silver take a plunge on heavy profit selling

Mumbai: Gold and silver took a severe beating at the bullion market here on Wednesday on hectic speculative sell-off triggered by heavy unwinding at global markets.

The overseas market witnessed heavy sell off in the precious metals in overnight trade as a strong rally in US dollar on the back of strengthening US economic recovery prompted heavy correction which followed suit by speculative domestic traders who relies heavily on international trend.

Silver, which was on a relentless rally recently, lost momentum and closed below the Rs 47,000-mark.

Standard gold (99.5 per cent puri
ty) tumbled by Rs 245 per 10 grams to end at Rs 20,385 from Tuesday`s closing level of Rs 20,630.

Pure gold (99.9 per cent purity) also fell by a similar margin to close at Rs 20,485 per 10 grams as against 20,730 in the previous session.

Silver ready (.999 fineness) tanked by Rs 1,295 per kg to finish at Rs 46,010 from Rs 47,305 yesterday.

In New York, gold for February delivery dipped by USD 44.10, or 3.1 per cent to settle at USD 1,378.80 an ounce on the Comex division of NYMEX.

Silver for March delivery too lost by USD 1.62 or 5.2 per cent to conclude at USD 29.51 an ounce.