Gold prices plunged by Rs 235 to Rs 26,930 per ten grams at the bullion market today largely in tandem with a weak trend in global market and low demand from jewellers and retailers.
Silver also dropped by Rs 230 to Rs 37,050 per kg on poor offtake by industrial units and coin makers.
Bullion traders said sentiments turned weak after gold extended losses in global market as investors await the outcome of a Federal Reserve meeting this week and a gathering of European finance ministers discuss the debt crisis in Greece.
Besides, sluggish demand from jewellers and retailers weighed on the precious metal prices, they said.
Globally, gold retreated 0.2 per cent lower at USD 1,179.85 an ounce and silver dropped 0.4 per cent to USD 15.97 an ounce in Singapore.
Subdued demand from jewellers and retailers also dampened the mood, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity tumbled Rs 235 each to Rs 26,930 and Rs 26,780 per ten gram, respectively. The precious metal had gained Rs 335 in the last two days.
Sovereign, however, continued to be traded at last level of Rs 23,700 per piece of eight gram for want of buying support.
Following gold, silver ready fell by Rs 230 to Rs 37,050 per kg and weekly-based delivery by Rs 270 to Rs 36,670 per kg.
Silver coins, however, remained unaltered at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.