Gold prices fell below Rs 20,000 per 10 grams level for the first time in nearly three months in the bullion market on Friday because of brisk selling stockist in line with a weakening global trend.The gold prices fell by Rs 360 to Rs 19,960 per 10 grams, a level last seen on November 4, while silver tumbled Rs 950 to Rs 41,700 per kg on fall in demand among jewellers at existing high levels.
Trading sentiments turned bearish after gold declined to the lowest level in four months in global markets, as recovering global economy eroded demand for haven investments.
Gold in global markets, which normally sets a price trend on the domestic front, fell by 0.4 per cent to $1,308.25 an ounce, the lowest level since October 1 and silver declined by 1.9 per cent to $26.40 an ounce.
Besides,
retail customers refrained from purchasing gold at existing higher levels and wait for further falls also influenced the market sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 360 each to Rs 19,960 and Rs 19,840 per ten grams respectively.
Sovereign also shed Rs 50 to Rs 16,700 per piece of eight grams.
The silver ready plunged by Rs 950 to Rs 41,700 per kg and weekly-based delivery by Rs 1000 to Rs 41,490 per kg.
Silver coin lost Rs 500 to Rs 48,000 for buying and Rs 48,100 for selling of 100 pieces.
