Gold, silver tumble on stockists selling, weak global cues

New Delhi, Jul 25. Both the precious metals, gold and silver prices, tumbled in the national capital today on heavy sell-off by stockists in tandem with a sharp fall in global markets. While gold plunged by Rs 510 to Rs 27,820 per 10 grams, silver lost Rs 755 to Rs 41,225 per kg on poor offtake by jewellers and indutrial units. Traders said the sentiment dampened following a steep fall in gold prices in overseas markets on signs of economic recovery as sales of new US homes in June rose to a five-year high, mainly kept pressure on the precious metals. Gold in New York, which normally sets the price trend on the domestic front, fell by 1.1 per cent to USD 1,320.30 an ounce, the biggest drop since July 5 and silver 1.2 per cent to USD 20.02 an ounce last night. In addition, sluggish demand at prevailing higher levels further influenced the trading sentiment. On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 510 each to Rs 27,820 and Rs 27,620 per 10 grams, respectively. Sovereigns followed suit and lost Rs 100 at Rs 24,200 per piece of eight grams. In line with a weak general trend, silver ready dropped by Rs 755 to Rs 41,225 per kg and weekly-based delivery by Rs 815 to Rs 41,090 per kg, respectively. Silver coins also plunged by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.