Bullion merchants said a weak global trend where gold extended losses to five-year low as the US economy data that showed improvement backed the case for higher interest rates, has cut demand for the precious metals as a safe-haven, leading to fall in gold and silver prices.

Globally, gold in Singapore, which normally sets price trend on the domestic front, dropped by 1.2 percent to USD 1,077.40 an ounce, the lowest level since February 11, 2010. Silver fell by 1.1 percent to USD 14.50 an ounce, its lowest level since December last year.

In the national capital, gold of 99.9 and 99.5 percent purity recorded a steep fall of Rs 320 each to Rs 25,050 and Rs 24,900 per 10 grams respectively. In futures trading at the Multi Commodity Exchange, gold was trading Rs 193 or 0.77 percent to Rs 24,758 per 10 gm (intra-day).

Yesterday, the precious metal has rebounded by Rs 120 largely in tune with global trend and low-level buying support from jewellers. Sovereign too declined by Rs 300 at Rs 22,200 per piece of eight gm.

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