Gold prices on Tuesday plunged by Rs450 to trade at almost four-month low of Rs25,700 per 10 grams at the bullion market, tracking a weak global trend amid subdued demand from jewellers and retailers.
Silver also fell sharply by Rs500 to Rs34,100 per kg on reduced offtake by industrial users and coin makers.
Apart from slackened demand from jewellers and retailers, a weak global trend where gold traded near the lowest level in over five years on expectations that the US Federal Reserve will soon hike interest rates, has cut demand for the precious metal as a safe-haven, leading to fall in prices.
Gold in Singapore, which normally determines price trend on the domestic front, dropped by 0.4 per cent, to $1,078.07 an ounce on Tuesday, while it ended 0.17 per cent down at $1,082.10 an ounce in New York in Monday's trade.
In the national capital, gold of 99.9 and 99.5 per cent purity tumbled by Rs450 each to Rs25,700 and Rs25,550 per 10 grams, respectively, a level last seen on July 20. It had gained Rs235 in Monday's trade.