Gold lost Rs 930 to close at Rs 27,820 per 10 grams in the bullion market on Wednesday due to profit- booking by stockists at existing high levels amid a weak global trend.
Gold had touched an all-time high of Rs 28,750 per 10 grams on Tuesday.
In line with the general weak trend, silver fell by Rs 2,100 to Rs 63,000 per kg, following a sharp decline in global markets.
Trading sentiments turned bearish after gold dropped in London as rising equities curbed demand for an alternative asset and prodded investors to sell the metal after its rally to a record high, traders said.
Gold in global markets, which normally sets the price trend on the domestic front, fell by $34.63 to $ 1,840.78 an ounce in London. Silver fell by 1.6 per cent to $41.34 an ounce.
Besides, fall in demand at prevailing high levels dampened the trading sentiment, they added.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 930 each to Rs 27,820 and Rs 27,670 per 10 grams.
Sovereigns followed suit and lost Rs 300 to Rs 22,500 per piece of eight grams.
Silver ready tumbled by Rs 2,100 to Rs 63,000 per kg and weekly-based delivery by Rs 2,585 to Rs 63,400 per kg. Silver coins also plunged by Rs 4,000 to Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces.
Keywords: bullion market