Can yellow metal scale back to 1 lakh level?

Analysts see steeper fall on Thursday; metal's relative strength index indicates prices passed into overbought territory

- BENN KOCHUVEEDAN @ Mumbai

AFTER a record rally of over 70% in rupee terms and over 65% in dollar terms so far this year, the yellow metal fell 6.3%, its worst single-day fall in 12 years on Tuesday, primarily due to profit booking and a slew of positive news flows.

For silver, which rallied 90% in rupee terms and 80% in dollar terms, the same reasons coupled with increased supply to the markets by the US and China led to a 7.8% fall in the metal, making it the worst fall since September 2011. In local markets, gold prices fell by 4,690/10 gm, while silver prices fell by 4,000/kg on Wednesday.