Snapping its two-day rising trend, gold fell by Rs. 325 to Rs. 28,190 per ten grams and silver by Rs. 490 to Rs. 44,200 per kg in New Delhi on Wednesday on reduced off-take by jewellers and industrial units.
Sentiment turned bearish after gold traded near the lowest price in more than two weeks at global markets on speculation that central banks will refrain from adding more stimulus to bolster global growth.
Gold in Singapore, which normally sets price trend on the domestic front, dropped 0.3 per cent to USD 1,374.81 an ounce.
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Prices had touched USD 1,366.19 yesterday, the lowest since May 23.
A sharp recovery in rupee against the dollar also influenced the sentiment as investors felt this would bring down the landing cost while importing precious metals.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs. 325 each to Rs. 28,190 and Rs. 27,990 per ten grams, respectively.
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The yellow metal had gained Rs. 515 in last two sessions.
Sovereign followed suit and shed Rs. 100 at Rs. 24,300 per piece of eight gram.
In line with a general weak trend, silver ready fell by Rs. 490 to Rs. 44,200 per kg and weekly-based delivery by Rs. 550 to Rs. 43,490 per kg. The white metal had gained Rs. 1090 in the previous two sessions.
Silver coins, however, held steady at Rs. 79,000 for buying and Rs. 80,000 for selling of 100 pieces.