Gold Tumbles Down, So Does Silver
It seems like the running negative sentiments have taken a turn on the global bullion markets, as gold was seen soaring down as it closed at Rs 26,740 per 10 grams today. A fall by Rs 600 placed the value of gold in the market at a tight spot, while it saw a low of Rs 1, 540 and high of Rs 25, 800 per 10 grams in the complete trading day.
It was seen by market observers that the disappointing news from the European market has thrashed the sentiments in the market to an extent that the gold saw a drop of over USD 225 in Asia in the last two trading sessions.
While gold was having a tough time, silver was seen trimming down by Rs 500 to Rs 53,500 per kg. If statistics are to be believed, silver has faced a loss of Rs 10,500 in last two trading sessions.
Fears of a cold bullion market forced the market investors to adopt a cautious approach and which was quite reflected in the market.
"Retail demand was weak. People were not buying despite the price fall", said Babu Alapatt, Managing Director at retailer Alapatt Gold Pvt Ltd in southern Kerala state, while expecting that demand for gold would soon escalate in the month of October and November with festive season on its way.