Extending its losses for the second straight day, gold prices dropped by Rs 210 to Rs 31,215 per ten gram in the national capital today on sustained selling by stockists on reduced offtake at higher levels amid weakening global trend.
Silver prices too fell by Rs 480 to Rs 44,800 per kg on reduced offtake by jewellers and coin makers.
Traders said weak demand at prevailing higher levels and retailers looking for more correction mainly kept pressure on gold and silver prices.
They said weakening global trend after a report showed rising confidence among American consumers, reduced demand for the precious metals as a safe haven, further fuelled the selling pressure.
Gold in New York, which sets price trend on the domestic front, fell by 0.3 per cent to USD 1,237.90 an ounce and silver by 1.1 per cent to USD 19.68 an ounce last night.
Shifting of funds from weakening bullion to rising equities too influenced the sentiment, they said.
On the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 210 each to Rs 31,215 and Rs 31,015 per ten gram, respectively. It had lost Rs 200 yesterday.
Sovereign followed suit and shed Rs 100 to Rs 25,200 per piece of eight gram.
Similarly, silver ready dropped further by Rs 480 to Rs 44,800 per kg and weekly-based delivery by Rs 430 to Rs 44,050 per kg. The white metal had lost Rs 510 in last trade.
However, silver coins held steady at Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.