Mumbai:- Gold prices plunged at the domestic bullion market here today following sustained selling by stockists and investors coupled with subdued local buying interest.
Gold fell overseas after the US Federal Reserve raised interest rates for the first time in a year and signalled more rate hikes in 2017.
Silver cracked below the Rs 41,000-mark by falling Rs 1,410 per kg owing to lack of industrial buying support.
Standard gold (99.5 purity) dropped by Rs 550 to end at Rs 27,350 per 10 grams from Wednesday’s closing level of Rs 27,900.
Pure gold (99.9 purity) also moved down by a similar margin to Rs 27,500 per 10 grams as compared to Rs 28,050 earlier.
Silver (.999 fineness) slumped by Rs 1,410 to conclude at Rs 40,200 per kg as against Rs 41,610 previously.
Globally, gold hit its lowest since early February, after the Federal Reserve sounded an unexpectedly hawkish note on US interest rates, sparking a surge in Treasury yields and sending the dollar to a 14-year high.
Spot gold hit a 10-1/2 month low of USD 1,132.15 an ounce, and was down 1 percent at USD 1,132.70 an ounce in early trade.
US gold futures for February delivery were USD 30.30, or 2.6 percent, lower at USD 1,133.40.
Meanwhile, silver was down 2.2 percent at USD 16.46 an ounce.
PTI
