Gold prices dropped by over 2 per cent to Rs 25,422 per 10 grams in futures trading today as the precious metal tumbled to over four-year lows in global markets.
At the Multi Commodity Exchange, the December contract of gold fell sharply by Rs 541, or 2.10 per cent, to Rs 25,422 per 10 gram in business turnover of 12,172 lots.
The far-month February contract plunged by Rs 524, or 2 per cent, to Rs 25,621 per 10 grams in 305 lots.
Analysts attributed the steep fall in gold prices to off-loading of positions by participants after the precious metal tumbled to lowest level since April 2010.
A stronger dollar cut demand and investors’ holdings in bullion-backed funds dropped to a five-year low, they said.
Meanwhile, gold prices at spot markets here plunged by Rs 450 to close at over three-year low of Rs 25,900 per ten gram.
Globally, gold fell almost 2 per cent to USD 1,143.76 an ounce in Singapore, the lowest price since April 2010.