Gold prices tumbled by Rs 380 to Rs 31,020 per 10 grams here today on heavy sell off by stockists in tandem with a steep fall in overseas markets.
With the general weakening trend, silver also dropped by Rs 2,200 to Rs 56,900 per kg on reduced offtake by industrial units and coin-makers.
Traders said sentiment turned extremely bearish after gold tumbled in global markets, as Federal Reserve policy makers said they will probably end asset purchases this year and investors cut holdings by the most since May.
In Singapore, gold fell by USD 24.40 to USD 1,639.40 an ounce, the lowest since December 21 and silver by 2.5 per cent to USD 29.42.
Besides, sluggish demand at prevailing higher levels also dampened the trading sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged by Rs 380 each to Rs 31,020 and Rs 30,820 per 10 grams, respectively. The metal had gained Rs 475 in last four trading sessions.
Sovereigns followed suit and shed Rs 50 to Rs 25,400 per piece of eight grams.
Similarly, silver ready tumbled by Rs 2,200 to Rs 56,900 per kg and weekly-based delivery by Rs 2,145 to Rs 57,020 per kg. Silver coins also dropped by Rs 3,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.