Gold plunges on profit taking

Gold prices plunged on the bullion markets on Tuesday (March 18) as stockists took profits after a meltdown in Asian markets, reports Economic Times.

An overnight slide in crude oil prices and small recovery in equity markets also supported downtrend of gold prices in local bullion markets.

On Tuesday, the price of yellow metal fell to Rs 13,205 per 10 gm in Mumbai, down Rs 290 over the previous day's all-time closing high of Rs 13,495. While Delhi lost Rs 270 before finishing the business at Rs 13,290, it traded Rs 295 lower at Rs 13,425 per 10 gm in Kolkata.

Reports that gold fell as low as USD 994.38 an ounce in Asian markets from Monday`s all-time high of USD 1,032.70, was the main reason for latest sell-off in the domestic markets, analysts said.

However, gold showed a positive trend in the European and US markets and rose more than 1% to USD 1,010 an ounce on the back of recovery in crude oil prices and the softer dollar.

Silver also came under selling pressure on lack of any trigger in the market. Ready silver plunged by Rs 1,300 at Rs 24,500 a kg in Delhi followed by Mumbai where prices were down by Rs 600 at Rs 25,050 a kg. Kolkata markets saw a loss of Rs 350 as the prices closed lower at Rs 24,250 a kg.