Both the precious metals, gold and silver, today tumbled in the national capital on heavy selling by stockists, driven by a weak global trend.
While gold tumbled by Rs. 320 to Rs. 27,320 per 10 grams, silver lost by Rs. 800 to Rs. 41,500 per kg on reduced off take by jewellers and industrial units.
The sentiment turned bearish after gold fell in global markets on the prospect that reduced monetary stimulus from the U.S. Federal Reserve may spur a stronger dollar and erode demand for a store of value.
Gold in Singapore, which normally sets the price trend on the domestic front, fell by 1.4 per cent to USD 1,278.94 an ounce and silver by 2.8 per cent to USD 19.55 an ounce.
In addition, sluggish demand due to off-marriage and festive season amid a weak trend at futures market where speculators offloaded their positions also dampened the sentiment.
Meanwhile, the government, on Monday, slashed the import tariff value of gold to $421 per ten grams and that of imported silver to $709 a kg, considering the falling trend in global prices.
The tariff value is the base price on which the customs duty is determined to prevent under-invoicing.
Last month, the tariff value of gold was at $459 per 10 grams and silver at $737 a kg.