BIG drop in Gold prices; Silver prices also tumble by Rs 2,121 per kg

Rising interest rates make gold less attractive as an investment mean.

If you are planning to buy precious yellow metal, then this could be the opportunity for you. After recording a constant increase, gold prices today recorded a big slump. Gold prices in Delhi dropped by Rs 543 to Rs 51,625 per 10 grams today amid a decline in the prices in the international market.

According to HDFC Securities, the rising interest rates make gold less attractive. "The strong US jobs data intensified concerns that the US Federal Reserve will be more aggressive with interest rate hikes. Rising rates make gold less attractive as an investment mean," it said.

In the previous trade, the gold preices had touched Rs 52,168 per 10 grams.

In line with yellow metal's slump, Silver also tumbled by Rs 2,121 to Rs 59,725 per kilogram from Rs 61,846 per kg.

Gold was trading in red at USD 1,683.05 per ounce while silver was down at USD 19.74 per ounce in the international markets.

Gold prices fell by Rs 640 to Rs 51,320 per 10 grams in futures trade today. On the Multi Commodity Exchange, gold contracts for December delivery traded lower by Rs 640 or 1.23 per cent at Rs 51,320 per 10 grams in a business turnover of 17,798 lots.

(With PTI Inputs)