At the Multi Commodity Exchange, gold prices for delivery in December fell by Rs 298, or 0.91 percent, to Rs 32,435 per 10 grams in business turnover of 21 lots. Similarly, metal prices for delivery in October declined by Rs 284, or 0.87 percent, to Rs 32,320 per 10 gram in 517 lots.

Market analysts said the fall in gold futures was mostly attributed to a weak trend overseas as the prospects for reduced stimulus in the US countered the threat of a military attack against Syria.

Further, recovery in the rupee which rose by 138 paise to 65.69 against the dollar, making dollar-quoted yellow metal cheaper, too attributed fall in gold prices, they said.

Globally, gold prices fell 1.46 percent to trade at USD 1,391.60 an ounce in New York on Wednesday  

Silver extends losses

Silver futures prices on Thursday fell by another 1.25 percent to, Rs 54,301 per kg, extending its Wednesday's slide, as speculators engaged in off-loading positions amid a weakening overseas trend and recovery in rupee's value.

Analysts said besides a weak trend in the overseas markets on concern over the US Fed scaling back stimulus, recovery in the rupee, making dollar-quoted precious metals cheaper, put pressure on silver futures prices.

At the Multi Commodity Exchange, silver prices for delivery in December declined further by Rs 689, or 1.25 percent to Rs 54,301 per kg in a turnover of 692 lots.

Similarly, the white metal prices for delivery in far-month March plunged by Rs 689, or 1.21 per cent, at Rs 55,510 per kg in 10 lots. Meanwhile, silver slid 0.20 per cent to USD 23.43 an ounce in Singapore on Thursday.

(Agencies)

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