Gold prices dropped below Rs 31,000 by falling Rs 280 to Rs 30,820 per ten gram in the national capital today on heavy selling by stockists influenced by a weak global trend. Silver also dropped by Rs 350 to Rs 47,050 per kg on poor offtake by industrial units and coin makers.
Traders said heavy selling by stockists against fall in demand at prevailing higher levels mainly kept pressure on gold prices.
They said a weak global trend where gold dropped on easing tension in Ukraine and slower physical purchases in China, the worldís largest consumer, further dampened the sentiment.
Gold in Singapore, which normally sets price trend on the domestic front, was traded tad lower at USD 1,334.86 an ounce from USD 1,336.90 yesterday.
In addition, some investors seen shifting their funds from weak bullion to rising equities also reduced the precious metals demand.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 280 each to Rs 30,820 and Rs 30,620 per ten gram respectively. The yellow metal had lost Rs 200 in last two trading sessions. Sovereign followed suit and shed Rs 50 to Rs 25,400 per piece of eight gram.
In a similar fashion, silver ready dropped by Rs 350 to Rs 47,050 per kg and weekly-based delivery by Rs 550 to Rs 46,850 per kg, while silver coins held steady at Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.