Gold prices on Tuesday plunged by Rs 450 to trade at almost four-month low of Rs 25,700 per 10 grams at the bullion market, tracking a weak global trend amid subdued demand from jewellers and retailers. Silver also fell sharply by Rs 500 to Rs 34,100 per kg on reduced offtake by industrial users and coin makers.
Apart from slackened demand from jewellers and retailers, a weak global trend where gold traded near the lowest level in over five years on expectations that the US Federal Reserve will soon hike interest rates, has cut demand for the precious metal as a safe-haven, leading to fall in prices.
Gold in Singapore, which normally determines price trend on the domestic front, dropped by 0.4 percent, to USD 1,078.07 an ounce today, while it ended 0.17 percent down at USD 1,082.10 an ounce in New York in yesterday's trade.
In the national capital, gold of 99.9 and 99.5 percent purity tumbled by Rs 450 each to Rs 25,700 and Rs 25,550 per 10 grams, respectively, a level last seen on July 20. It had gained Rs 235 in yesterday's trade.
Sovereign, however, continued to be asked at previous level of Rs 22,200 per piece of eight grams.
In tune with gold, silver ready fell by Rs 500 to Rs 34,100 per kg and weekly-based delivery by Rs 620 to Rs 33,640 per kg.
Meanwhile, silver coins remained flat at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.