MUMBAI (Commodity Online): Is the gold rush over? It seems the gold’s bull ‘rashee’ is changing and the yellow metal is witnessing a slump phase now.

According to analysts, gold suffered the second-largest fall within four months in the Indian domestic market on Friday.

In Mumbai, standard gold plunged by Rs 245 before closing at Rs 15,595 per 10 gm on Friday. The fall was the biggest since May 18 this year, when the yellow metal was hammered by Rs 385. Similarly, pure gold too became cheaper by Rs 240 at Rs 15,675 per 10 gm.

The market was in a bearish mood, as stockists took profits at the current level after dismal US housing data which lifted the dollar against other major currencies, eroding gold’s appeal of alternative tool of investment.

However, falling prices failed to lure buyers despite the ongoing festive season.

Buying activity has shrunk with volumes touching less than half of the daily average as most retail customers have deferred their decision to buy for the ongoing Navratri festival in view of volatile market.

The demand may pick up during Diwali if prices fall to Rs 15,000-level.

In London, gold was last seen at $991.40 an ounce after touching as low as $984.70 in early trade on Friday as investors sold a part of their holdings after the disappointing US data.

The metal had touched 18-month high of $1,024.28 on September 17, within a striking distance of its all-time high of $1,030.80 in March 2008.

In other metros, Delhi faced the maximum plunge with the metal falling by Rs 320 to touch Rs 15,770 followed by Chennai by Rs 240 at Rs 15,640 per 10 gm.

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