Gold prices dropped by Rs 420 to Rs 31,930 per ten gram in the national capital on Tuesday owing to slackened demand driven by weak global trend and investors shifting their funds to surging equities.
Silver also declined by Rs 210 to Rs 49,590 per kg on reduced offtake by industrial units.
Traders said sluggish demand at prevailing higher levels and investors shifting their funds to surging equities mainly kept pressure on gold and silver prices.
They said a weak global trend, as a stronger dollar curbed demand for an alternative investment before Federal Reserve policy makers meet to discuss monetary policy, further dampened the sentiment, they said.
Gold in London, which normally sets price trend on the domestic front, fell 0.5 per cent to USD 1,345.93 an ounce and silver by 0.5 per cent to USD 22.38 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity plunged further by Rs 420 each to Rs 31,930 and Rs 31,730 per ten gram, respectively. It had lost Rs 220 yesterday.
Sovereign, however, found retailers buying and rose by Rs 300 to Rs 25,300 per piece of eight gram.
Silver ready fell further by Rs 210 to Rs 49,590 per kg and weekly-based delivery lost Rs 1,060 to Rs 48,890 per kg. The white metal had shed Rs 100 in last trade.
On the other hand, silver coins spurted by Rs 2,000 to Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces on upsurge in festive demand.