Mumbai: Gold and silver plummeted to hit multi-year low at the bullion market here as selling remained unabated for the third consecutive week.
The yellow-metal resumed on a sluggish note amid lacklustre local buying interest turned extreme volatile towards the fag-end trade and crashed below Rs 28,000 per 10 gram mark on aggressive sell-off by panic stricken investors and traders following heavy unwinding in overseas.
The metal plummeted to one-year low by a massive five percent, its lowest level since March 21, 2012.
Silver also came under intense selling pressure and nosedived to hit a 15-month low to close below Rs 51,000 per kilo level.
On the global front, the shiny metal tanked below the USD 1,500 an ounce on widespread unwinding by gold ETFs and investors as sentiment turned extremely bleak on heightened fear and speculation that the Cyprus central bank may offload gold to overcome the current debt crisis.
An unexpected contraction in US retail sales and slew of negative economic data added further pressure on the metal.
In New York, gold for June delivery slumped to USD 1,501.40 an ounce from last weekend's closing level of USD 1,575.90 an ounce. The May contract for silver tumbled to USD 26.33 an ounce compared to USD 27.22 last weekend.
Standard gold (99.5 purity) resumed lower at Rs 29,455 and slumped further to close at Rs 27,880 from preceding weekend's level of Rs 29,510, showing a massive slide of Rs 1,630, or 5.52 percent per 10 grams.
Pure gold (99.9 purity) commenced weak at Rs 29,590 and tumbled to finish at Rs 28,015 over its previous weekend's close of Rs 29,650, registering a heft fall of Rs 1,635, or 5.51 percent per 10 grams.
Silver ready (.999 fineness) started slightly lower at Rs 52,430 and tanked to conclude at Rs 50,605 from its last weekend's close of Rs 52,535, disclosing a sharp fall of Rs 1,930, or 3.67 percent per kg.