Gold prices on Tuesday fell by Rs. 190 to Rs. 18,300 per ten grams in the bullion market here as firming stock markets reduced the appeal of the precious metal considered as a safe bet.
Silver plunged by Rs. 450 to Rs 29,150 per kg on lack of buying support from industrial units.
Gold had surged to Rs. 18,490 per ten gram, a tad away from all-time high of Rs. 18,550 recorded on December 3, as investors shifted funds from weak equity markets rocked by concerns over the debt crisis in the eurozone countries, to the precious metal.
Trading sentiment turned bearish after gold fell to one-week low in London as stock advances and a rebound by the euro curbed demand for the metal as a haven asset, marketmen said.
European equities gained for the first time in three days as company earnings eased concern that measures to control the region?s debt crisis will curb economic growth.
The gold in overseas markets which normally set a price trend on domestic front here, fell by $12 to $1,210.45 an ounce.
Standard gold and ornaments tumbled by Rs. 190 each to Rs. 18,300 and Rs. 18,150 per ten gram respectively. Sovereign, held steady at Rs. 14,450 per piece of eight grams in restricted buying.
In line with a general weakening trend, silver ready plunged by Rs. 450 to Rs. 29,150 per kg and weekly-based delivery by Rs 400 to Rs 29,300 per kg.
Meanwhile, silver coins continued to be asked around previous level of Rs. 34,400 for buying and Rs. 34,500 for selling of 100 pieces.