New Delhi/Mumbai: Gold prices on Wednesday dropped to four-year low levels, dropping below Rs 25,000 per 10 gram mark in Mumbai, amid a global rout in the rates of precious metal.
In Kolkata, standard gold (99.5 purity) or 22-carat gold fell below Rs 24,000 per 10 grams price for the first time in seven years. Standard gold was quoted at Rs 23,985 per 10 gram, down Rs 235 from yesterday.
The price of pure gold (99.9 purity) fell below Rs 25,000-mark by tumbling Rs 300 to Rs 24,820 per 10 gram in Mumbai.
In the National Capital, gold of 99.9 and 99.5 percent purity slumped by Rs 300 each to Rs 25,250 and Rs 25,100 per 10 gram respectively, its weakest level since August 8, 2011.
At Chennai, standard gold fell by Rs 290 to Rs 25,220 per 10 gram.
"Buyers are deferring their purchases, anticipating further dip in gold prices in coming days," said Rakesh Anand of R K Jewellers in the National Capital.
Sentiments in gold remained extremely bearish on weak trend overseas as it retreated for the 10th straight day in New York after Goldman Sachs group predicted further decline in its prices, bullion merchants said.
Global rout in gold is being driven by speculation that the US may raise interest rates this year, diminishing the appeal of the metal and strengthening the dollar.
Also, in futures trading at the Multi Commodity Exchange gold for delivery in August month was trading down Rs 322, or 1.29 percent at Rs 24,575 per 10 gram.
On the global front, gold fell to five-year low levels losing 1.3 percent to USD 1,089.70 an ounce.
The precious metal slid to USD 1,086.18 an ounce on Monday, the lowest level since March 2010.
In line with gold, silver prices fell by Rs 205 to Rs 33,825 per kg at Chennai, while the white metal lost Rs 200 at Rs 34,100 per kg in the national capital.
At Kolkata, silver ended Rs 100 lower at Rs 34,050 per kg and at Mumbai, it was down by Rs 90 to Rs 34,635 per kg.
At the MCX, silver futures for delivery in September fell by Rs 359, or 1.05 percent at Rs 33,663 per kg.