Gold, silver plunge on stockists selling, weak global cues

New Delhi, May 2. Falling for the third straight session, both the precious metals, gold and silver, today plunged due to frantic selling by stockists, triggered by a weak global trend. While gold dropped by Rs 285 to Rs 27,615 per 10 grams, silver plunged by Rs 1,510 to Rs 45,090 per kg on poor offtake by industrial units and coin makers. The trading sentiment remained bearish as gold dropped the most in two weeks in overseas markets after investors reduced holdings in bullion-backed exchange-traded products amid concern the Federal Reserve may scale back its stimulus program. In Singapore, gold declined by 0.6 per cent to USD 1,448.93 an ounce and silver by 0.2 per cent to USD 23.58 an ounce. In tandem with the global trend, stockists off-loaded their positions and retailers refrained from making fresh purchases on hopes of more correction in prices. In addition, some investors diverted their funds to rising equity market, which also influenced the sentiment. On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 285 each to Rs 27,615 and Rs 27,415 per 10 grams, respectively, after losing Rs 300 in last two days. Sovereigns fell by Rs 200 to Rs 24,000 per piece of eight grams. Silver ready dropped by Rs 1,510 to Rs 45,090 per kg and weekly-based delivery by Rs 810 to Rs 44,025 per kg. The white metal had lost Rs 400 in the previous two session. Silver coins also tumbled by Rs 1000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.