Gold price tumbled by Rs 200 to Rs 27,840 per 10 grams, on fresh selling by stockists in tandem with a weakening global trend and fading demand. Silver price also followed suit and lost Rs 300 to Rs 52,200 per kg on reduced offtake by industrial units and jewellers.
The trading sentiment turned bearish after gold rates fell to its lowest level in a week in global markets, dropping alongside stocks and other commodities on concern that Europe's debt crisis may escalate and weigh on global growth.
In Singapore, gold rates fell below the crucial $1,600 level by losing one per cent to $1,591.20 an ounce, the lowest since December 20 and silver by 1.3 per cent to a one-week low of $28.73 an ounce.
In addition, sluggish domestic demand at prevailing higher levels and off marriage season further dampened the trading sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 200 each to Rs 27,840 and Rs 27,700 per 10 grams, respectively, while sovereigns remained flat at Rs 23,300 per piece of eight grams in scattered deals.
