Gold prices moved lower by Rs 90 to Rs 27,860 per 10 grams Thursday, tracking a weak trend in global market and a fall in demand from local jewellers due to scarcity of funds following demonetisation.
Silver also cracked below the Rs 39,000-mark by plunging Rs 750 to Rs 38,900 per kg on poor offtake by industrial units and coin makers.
At the Multi Commodity Exchange (MCX), gold for delivery in February was trading down Rs 30, or 0.11 percent, to Rs 26,960 per 10 grams.
Analysts said the fall in gold futures was mostly in tune with a weak trend in the precious metals overseas and trimming of positions at current levels by speculators.
Apart from a weak trend overseas, considerable drop in demand from jewellers and retailers at domestic spot market, hit by prevailing cash crunch due to demonetisation, weighed on the precious metal prices.
Globally, gold fluttered in a narrow range today in muted trading ahead of the holidays, with market participants now waiting for a bunch of US economic data due later in the day.
Spot gold was steady at USD 1,131.76 an ounce. US gold futures were little changed at USD 1,133.50 per ounce.
In the national capital, 99.9 percent and 99.5 percent purity gold fell by Rs 90 each to Rs 27,860 and Rs 27,710 per 10 grams, respectively. The yellow metal had gained Rs 100 in yesterday's trade.
In tune with gold, silver ready plunged by Rs 750 to Rs 38,900 per kg.
With Agency Inputs