Gold prices continued its descent and plunged to close below the psychologically-significant Rs 27,000 per 10 grams mark at the domestic bullion market in Mumbai on Thursday on consistent selling by stockists and traders. Silver also plummeted to hit multi-month lows following heavy speculative unwinding. Extreme bearish global scenario against the back drop of sluggish demand amid lack of local buying support at prevailing levels mainly dampened the domestic sentiment, a trader commented. Standard gold (99.5 purity) slumped by Rs 200 to end at Rs 26,975 per 10 grams from Wednesday's closing level of Rs 27,175. Pure gold (99.9 purity) shed by Rs 195 to conclude at Rs 27,125 per 10 grams from Rs 27,320. Silver (.999 fineness) dropped by Rs 545 to finish at Rs 40,520 per kg as compared with Rs 41,065 previously. Globally, the shiny metal extended losses to a third straight session, hitting fresh 16-week lows on firm dollar and surging equities. Spot gold was bid down at $1,253.21 in early European trade.

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