MUMBAI: Gold prices nosedived to a six week low level on Tuesday at the bullion market and ended at Rs 11,830 per 10 grams.
The precious yellow metal dropped by Rs 460 to 11,830 per 10 grams, a level last seen on February 19, as the precious metal traded below 900 dollar an ounce after the greenback strengthened against euro.
Heavy selling by stockists influenced by a weakening trend in global markets.
Fall in oil prices and a broad decline in commodities prices reduced the metal's appeal as hedge against inflation.
Marketmen said on emergence of panic selling in line with record plunged in the precious metals prices at overseas front mainly led to the fall in both gold and silver prices.
Gold fell by 20.18 dollar, or 2.2 per cent, to 896.70 dollar an ounce in London, the first drop since February 15. Silver also lost 44 cents to 16.795 dollar an ounce.
Standard gold and ornaments tumbled by Rs 460 each at Rs 11,830 and Rs 11,680 per 10 grams respectively. Sovereign too lost Rs 125 to Rs 9800 per piece of eight gram.
In a similar fashion, silver ready attracted heavy selling and nosedived by Rs 1,270 to Rs 22,230 per kg and weekly based delivery by Rs 1,410 to Rs 21,700 per kg. Its coins traded lower by Rs 100 to Rs 26,500 for buying and Rs 26,600 for selling of 100 coins.