New Delhi: Gold on Tuesday tumbled by Rs 200 to Rs 27,840 per 10 grams, on fresh selling by stockists in tandem with a weakening global trend and fading demand. Silver followed suit and lost Rs 300 to Rs 52,200 per kg on reduced offtake by industrial units and jewellers.
The trading sentiment turned bearish after gold fell to its lowest level in a week in global markets, dropping alongside stocks and other commodities on concern that
Europe's debt crisis may escalate and weigh on global growth.
In Singapore, gold fell below the crucial USD 1,600 level by losing one per cent to USD 1,591.20 an ounce, the lowest since December 20 and silver by 1.3 percent to a one-week low of USD 28.73 an ounce.
In addition, sluggish domestic demand at prevailing higher levels and off marriage season further dampened the trading sentiment.
On the domestic front, gold of 99.9 and 99.5 percent purity fell by Rs 200 each to Rs 27,840 and Rs 27,700 per 10 grams, respectively, while sovereigns remained flat at Rs 23,300 per piece of eight grams in scattered deals.
In a similar fashion, silver ready dropped by Rs 300 to Rs 52,200 per kg and weekly-based fell by Rs 230 to Rs 52,800 per kg. Silver coins also declined by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.