At the MCX, the gold contract for delivery in August crashed by Rs 524, or 2.06 percent, to Rs 24,974 per 10 grams in a business volume of 597 lots at the Multi Commodity Exchange. Also, the metal for delivery in far-month October was trading Rs 519, or 2.02 percent, down at Rs 25,200 perten grams in 30 lots.

Analysts said a weak trend in the overseas markets where gold slumped to the lowest in more than five years amid prospects for higher US rates dragged gold futures below Rs 25,000 level here.

Globally, gold was trading lower at USD 1,086.18 an ounce in Singapore today, the lowest since March 2010. Prices sank 2.5 percent last week, the most since March.

While China updated its bullion reserves on Friday for the first time since 2009, 57 percent increase to 1,658 metric tonnes was smaller than had been estimated.

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