New Delhi: Gold prices plunged by Rs 275 to Rs 28,200 per ten gram in the national capital on Tuesday on stockists selling, tracking a weak global trend.
Besides, subdued demand from jewellers in the domestic market and shifting of funds towards the surging stock markets also weighed on gold prices, traders said.
Silver also declined by Rs 200 to Rs 45,200 per kg on weak demand from industrial units and coin makers.
Sentiment turned weak after gold declined in overseas as the dollar strengthened and equities advanced, reducing appeal of precious metals as an alternative investment, they said.
Gold in Singapore, which normally sets price trend on the domestic front, fell 0.5 percent to USD 1,305.40 an ounce and silver by 0.2 percent to USD 20.88 an ounce.
In Delhi, gold of 99.9 and 99.5 percent purity lost Rs 275 each at Rs 28,200 and Rs 28,000 per ten gram respectively, while sovereign eased by Rs 100 at Rs 24,800 per piece of eight gram.
In a similar fashion, silver ready traded lower by Rs 200 to Rs 45,200 per kg and weekly-based delivery by Rs 175 to Rs 44,910 per kg. Silver coins also dropped by Rs 1,000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.