New Delhi, Apr 12 () : Gold tumbled to ten months lowest by losing Rs 505 to Rs 29,470 per ten gram in the Delhi market yesterday on desperate selling by stockists amid few buyers. This was driven by a steep fall in global markets.
Last year on May 30, gold prices were down to a level as they tumbled in New York by $ 25.70 to $ 1559.30 an ounce. This was based on fears the US Fed might pull back stimulus.
Similarly, silver dropped by Rs 875 on less demand by industrial units. Traders turned bearish on lack of demand and stockists selling triggered a steep fall in precious gold prices in global markets.
Equity markets now give more returns than gold. On April 3, gold dropped by Rs 500. Sovereign continues to be at Rs 25,100 for 8 gms but 99.9 purity lost Rs 505 and stands at Rs 29,270.
Last year, the total sales volume of gold were Rs 2.47 lakh crore and total gold sold in the country was 864 tonnes. 552 tonnes represented gold jewellery bought for investment purpose and as gift items.
Fifty per cent of jewellery sales were made for wedding purposes. South India market accounted for 40 per cent of the total jewellery market.The dropping of prices has affected the gold loan market. Those who bought it as investment are now pledging it. Gold dealers are offloading fearing further crash.