Gold prices fell by Rs 120 to Rs 26,130 per 10 grams at the bullion market today, largely in tandem with a weakening trend overseas amid low demand from jewellers.
Silver too dropped for the fourth day and lost another Rs 480 to Rs 34,700 per kg on poor offtake by industrial units and coin makers.
Traders said sentiments dampened after gold fell for the fourth day in global market following US Fed’s indication of a hike in interest rate this year, boosting the dollar and curbing demand for the precious metal as an asset.
Globally, gold dropped 0.3 per cent to trade at four-month low of USD 1,146.19 an ounce in Singapore.
Besides, low demand from jewellers and shifting of funds towards rising equity market weighed on the prices, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 120 each to Rs 26,130 and Rs 25,980 per 10 grams respectively.
Sovereign, however, remained steady at Rs 23,000 per piece of eight gram in limited deals.
Tracking gold, silver ready fell by Rs 480 to Rs 34,700 per kg and weekly-based delivery by Rs 495 to Rs 34,610 per kg.
Silver coins also tumbled by Rs 1,000 to Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces.