After rising for two straight days, gold prices retreated from over two-month high by falling Rs 250 to Rs 26,650 per ten grams at the bullion market today, taking weak cues from global markets amid fall in demand from jewellers.
Silver also declined by Rs 250 to Rs 34,400 per kg on reduced offtake by industrial units and coin makers.
Traders said besides a weak trend overseas, easing demand from jewellers and retailers at prevailing higher levels mainly led to the fall in the precious metals prices here.
Globally, gold fell 0.3 per cent to $1,098.12 an ounce in Singapore.
Recovery in the rupee against the dollar that made imports cheaper also influenced sentiments, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 250 each to Rs 26,650 and Rs 26,500 per ten grams, respectively. It had gained Rs 550 in the last two days.
Sovereign followed suit and shed Rs 100 at Rs 22,400 per piece of eight grams.
Silver ready also dropped by Rs 250 to Rs 34,400 per kg and weekly-based delivery by Rs 285 to Rs 34,355 per kg.
Silver coins too plummeted by Rs 1,000 to Rs 49,000 for buying and Rs 50,000 for selling of 100 pieces.