After two straight days of gains, gold prices on Wedensday plunged by Rs.175 to Rs 29,550 per 10 grams at the bullion market, taking cues from a weak trend overseas and slack demand from local jewellers.
Silver also stopped in its tracks after a four-day gaining streak, falling Rs.340 to Rs.41,500 per kg on reduced offtake by industrial units and coin makers.
Traders said that besides a weak trend in the overseas market as strength in dollar reduced appeal for the precious metal as a safe-haven, fall in demand from local jewellers and retailers at domestic spot market kept pressure on gold prices.
Globally, gold fell by 0.41 per cent to $1,203.60 an ounce and silver by 0.59 per cent to $16.96 an ounce in Singapore.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged by Rs.175 each to Rs.29,550 and Rs.29,400 per 10 grams, respectively. The precious metal had gained Rs.150 in the previous two sessions.
Sovereign, however, remained unaltered at Rs.24,300 per piece of eight grams.
Following gold, silver ready dropped by Rs.340 to Rs.41,500 per kg and weekly-based delivery by Rs.330 to Rs.41,340 per kg.
Silver coins, however, remained flat at Rs.72,000 for buying and Rs.73,000 for selling of 100 pieces.