Gold sheds Rs 600, falls to Rs 26,740

Gold prices closed the day at Rs 26,740 per 10 grams on Monday,registering a loss of Rs 600, due to panic selling by stockists, sparked by asteep fall in global bullion markets.

The metal had suffered the steepest single day fall byplunging Rs 1,540 to touch an intra-day low of Rs 25,800 per 10 grams in theopening trade.

Trading sentiments dampened after the gold fell by over $225in Asia in the last two trading sessions, itsworst two-day slump since 1983, on speculation that the European governmentswill struggle to contain the region's debt crisis.

Silver followed suit and shed Rs 500 to Rs 53,500 per kg.

The metal has lost Rs 10,500 in last two trading sessions asindustrial units refrained from buying during high volatility.

In Singapore,gold tumbled $124 to $1,532.72 an ounce and silver by 9.70 per cent to $26.07an ounce.

Market analysts said retailers' adopted cautious approachand refrained from buying on expectation that the precious metals' prices mayfall in the coming days, which further dampened the sentiment.

Back home, gold of 99.9 and 99.5 per cent purity moved downby Rs 600 each to Rs 26,740 and Rs 26,600 per 10 grams, respectively. The metalhas lost Rs 1,160 in the last three sessions.

Sovereigns held steady at Rs 21,200 per piece of eight gramson restricted buying.

Silver ready closed at Rs 53,500 per kg, down by Rs 500.

It had opened lower at Rs 50,800. Silver weekly-baseddelivery plunged by Rs 2,960 to Rs 50,800 per kg.

Silver coins tumbled by Rs 5,000 to Rs 56,000 for buying andRs 57,000 for selling of 100 pieces.