Gold prices on Wednesday tumbled by ₹250 to trade at over five-month low of ₹30,800 per 10 grams at the bullion market amid weakening global trend and considerable fall in demand from local jewellers.
Silver followed suit and dropped by ₹620 to ₹39,200 per kg on poor offtake by industrial units and coin makers.
Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell’s US economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.
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Globally, gold fell 0.32 per cent to $1,223.30 an ounce and silver by 0.84 per cent to $15.41 an ounce in Singapore.
Besides, muted demand from local jewellers and retailers at domestic spot markets too weighed on prices.
In the national capital, gold of 99.9% and 99.5% purity plunged by ₹250 each to ₹30,800 and ₹30,650 per 10 grams, respectively, a level last seen on February 8, 2018. The precious metal had lost ₹100 yesterday.
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Sovereign, however, remained unaltered at ₹24,700 per piece of eight grams.