Traders said sustained selling by stockists in tandem with a weakening global trend, where gold fell to the lowest since July as improving economic growth reduced demand for the precious metal as an alternate investment, mainly pulled down the prices.
Gold prices in New York, which normally sets price trend on the domestic front here, tumbled by 2.5 per cent to USD 1,218.80 an ounce, the lowest since July 8, and silver by 3.7 per cent to USD 19.28 an ounce, the biggest drop since October 31.
Sluggish local demand because retailers refrained from purchases on expectations of more correction in the precious metals in coming days also dampened the sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged further by Rs 215 each to Rs 30,800 and Rs 30,600 per ten gram, respectively. It had lost Rs 510 yesterday. Sovereign also declined by Rs 100 to Rs 25,100 per piece of eight gram.
Silver ready dropped by Rs 800 to Rs 44,000 per kg and silver weekly-based delivery by Rs 955 to Rs 42,930 per kg, after losing Rs 275 in the previous session. Silver coins held steady at Rs 83,000 for buying and Rs 84,000 for selling of 100 pieces.