Gold tumbles globally, cheapest glitter in Delhi
Posted on: 10:33 PM IST Mar 20, 2008
Mumbai: Dollar stole the shine of gold across the globe and in the domestic bullion markets it was almost a free-fall in prices with Delhi recording the biggest ever drop of Rs 1,110 per 10 gram from its peak of over 13k.
The metal in London fell to 905 dollars an ounce from a record 1,033 dollars.
On domestic front, the rates came down to Rs 12,000 per 10 gram in Delhi, a fall of Rs 1,110, followed by Kolkata, where it slipped by Rs 930 at Rs 12,305.
In Mumbai and Chennai, the prices lost Rs 905 each at Rs 12,075 and Rs 12,175 per 10 gram respectively.
Traders said panic selling emerged after reports that the metal plunged to a month-low level globally after the US dollar rallied.
Bullion merchants said the market experienced a biggest fall in its history as dollar firmness diverted all financial and commodity markets.
They said the plunge in bullion came at a time when the Indian markets are passing through an off marriage season.
Meanwhile, US dollar is advancing against its major rivals euro and yen in European markets. The dollar, snapping its softening trend, is gaining after the US Federal Reserve cut lending rates by 0.75 percentage.
Analysts said the fall in prices is only the much-needed correction. Gold, an all-weather investment option, has been spiralling, primarily because of waning charisma in other investment options.