MUMBAI: Heavy selling by stockists prompted by global trend saw the yellow metal tumbled by Rs 150 per 10 gram at the bullion market here on Monday.
The gold dropped by Rs 150 at Rs 12,150 per ten gram as market participants judged the metal had increased sharply.
Silver plunged by Rs 800 at Rs 22,400 per kilo on reduced offtake by industrial units and silver coin manufacturers, besides a weakening t rend in overseas markets.
The gold in overseas markets fell after its biggest weekly loss in 25 years as a gain in dollar eroded demand for alternative investments such as bullion.
It traded lower at $906.79 an ounce today, 12 per cent below the record $1,032.70 reached on March 17. Silver also fell 0.7 per cent to $17.015 an ounce.
Marketmen said the selling pressure emerged in gold after some weak signals from overseas markets, which normally set price band in domestic markets. There was hardly any factor to support the metal.
Standard gold and ornaments dropped by Rs 150 each at Rs 12,150 and Rs 12,000 per ten gram respectively. Sovereign also lost Rs 100 at Rs 9,900 per piece of eight gram.
Silver ready tumbled by Rs 800 at Rs 22,400 per kilo and weekly based delivery by Rs 1,100 at Rs 22,440 per kilo. Silver coins dropped by Rs 300 at Rs 26,400 for buying and Rs 26,500 for selling of 100 pieces.