Silver plunges on sell-off, gold drops

Mumbai: Silver prices plunged at the domestic bullion market on Friday on frantic sell-off by stockists and speculators on the back of weak international market.

Gold also declined owing to profit-selling as well as mute local buying interest at the existing higher levels.

In overseas market, the precious metals declined ahead US job data amidst investors concern over Moody`s warning on cutting the US triple-A credit rating if there is no progress on debt talks.

Silver ready (.999 fineness) tanked by Rs 2,465 per kg to close at Rs 53,875 from Thursday`s closing level of Rs 56,340 per kg.

Standard gold (99.5 purity) dropped by Rs 205 per 10 grams to end at Rs 22,310 from overnight closing level of Rs 22,515.

Pure gold (99.9 purity) also fell by Rs 210 per 10 grams to finish at Rs 22,410 as compared to Rs 22,620 previously.

In Europe, spot gold was bid at USD 1,524.94 an ounce in early trade from USD 1,532.55 late in New York yesterday.

Spot silver bid at USD 35.25 an ounce from USD 36.17.