Driven down by weak cues from the global market and slack demand from jewellers, gold plunged by Rs 115 per 10 grams at the bullion market on Wednesday.
Standard gold (99.5 purity) dropped by Rs 115 to finish at Rs 28,180 per 10 grams from yesterday’s closing level of Rs 28,295.
Pure gold (99.9 purity) also fell to end at Rs 28,330 per 10 grams as compared to Rs 28,445.
Silver (.999 fineness) also slid by Rs 230 per kg to finish at Rs 41,100 from Rs 41,330 from yesterday’s closing level.
Globally, Gold prices settled lower for a second session yesterday, as the dollar strengthened against its leading rivals and US stocks traded mostly higher drawing investors attention away from the precious metal.
Gold investors also remained on the defensive as they faced the strong likelihood of a Federal Reserve interest-rate hike next week and the possibility that monetary policy will tighten at an accelerated pace in 2017, boosting the dollar and cutting demand for the yellow metal.