Gold prices decline for the second straight day by losing Rs. 140 to Rs. 30,360 per ten gram in the national capital on Wednesday on sustained selling amid a weakening global trend.
Silver also plunged by Rs. 800 to Rs. 44,200 per kg on poor off-take by industrial units and coin makers.
A similar trend was seen in Mumbai as gold of 99.9 and 99.5 per cent purity fell by Rs. 70 and Rs. 75 to Rs. 30,080 and Rs. 29,925 per ten gram, respectively, while silver tumbled by Rs. 850 to Rs. 44,900 per kg on sustained stockists selling.
Traders said sustained selling by stockists in line with a weak global trend, where gold dropped amid expectations that stimulus will be cut further as the US Federal Reserve decides on monetary policy, mainly dampened the sentiment.
Gold in Singapore, which normally sets price trend on the domestic front, lost 0.6 per cent to USD 1,248.90 an ounce.
Besides, strengthening rupee against the American currency which makes the import of the dollar-priced precious metals cheaper further influenced the sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity surrendered further by Rs. 140 each to Rs. 30,360 and Rs. 30,160 per ten gram, respectively. It had lost Rs. 70 on Tuesday.
Sovereign, however, remained in some demand and advanced by Rs. 50 to Rs. 25,250 per piece of eight gram.
In a similar fashion, silver ready dropped further by Rs. 800 to Rs. 44,200 per kg and weekly-based delivery by the same margin to Rs. 44,100 per kg. The white metal had shed Rs. 75 in the previous session.
Silver coins too plunged by Rs. 1,000 to Rs. 86,000 for buying and Rs. 87,000 for selling of 100 pieces.