Zee Media Bureau
Gold prices tumbled by over Rs 400 per ten grams during the week after rebounding from their multi-year lows following renewed selling in the backdrop of heightened global volatility.
Despite a firm start, yellow-metal succumbed to fag-end profit-taking by jewellery stockists and speculators, as sentiment turned highly cautious after the metal's steep fall in worldwide trade.
Besides sluggish demand, easing restrictions on gold imports to boost supplies too dampened the overall mood.
The government late on Friday unexpectedly scrapped the controversial 80:20 scheme, easing restrictions on gold imports that were originally put in place last year to curb ballooning current account deficit.
On the global front, shiny metal retreated sharply after revisiting psychological important USD 1,200 an ounce mark briefly following frantic funds sell-off pressured by stronger dollar value.
Investors jittery ahead of an upcoming Swiss referendum on central bank gold reserves also weighed on sentiment.
Gold for December delivery dropped to settle at USD 1,175.20 an ounce on the Comex division of the NYMEX against last weekend's level of USD 1,197.70 and silver also slumped to USD 15.49 an ounce from USD 16.40 previously.
In the national capital, gold of 99.9 and 99.5 percent purity opened the week higher at Rs 26,930 and Rs 26,730 per ten gram respectively.
Subsequently, met with resistance and fell to close at two-week low of Rs 26,400 and Rs 26,200 per ten gram, a level last seen on November 12. During the week, the precious metal prices have fallen by Rs 400 each.
At Mumbai bullion market, standard gold (99.5 purity) resumed better at Rs 26,455, but later drifted sharply to conclude at Rs 26,000 against last weekend's close of Rs 26,405, showing a sharp loss of Rs 405, or 1.53 percent per 10 grams.
Pure gold (99.9 purity) also started firm at Rs 26,605 before sliding to finish at Rs 26,150 from last close of Rs 26,555, posting a steep fall of Rs 405, or 1.53 percent per 10 grams.
With PTI Inputs
