Gold prices plummeted by Rs 170 per ten gram on the bullion market in Mumbai on Thursday and closed at a 6-month low of Rs 5,660.

Meanwhile, silver plunged by a whopping Rs 785 per kilo to end at a 4-month low of Rs 9,030.

Standard gold (99.5 purity) resumed notably lower at Rs 5,690 and continued to fall sharply on increased selling, before closing at Rs 5,660, a level not seen after October 2003 which showed a steep fall of Rs 170 over the previous close of Rs 5,830.

Pure gold (99.9 purity) also started sharply weak at Rs 5,740 and nosedived further to close at Rs 5,710, also showing a similar fall over the last close of Rs 5,880.

Attributing the steep fall in prices to a sharp setback in the global prices, dealers said gold declined by over 3 per cent in New York to hit a 5-1/2 month low of $383.65 per ounce due to heavy fund and bullion banks selling as the US dollar rose across the board on Wednesday amid optimism over the strength of the United States economy.

Similarly, gold fell sharply in Hong Kong to close at $383.20-383.70 per ounce from yesterday's close of $397.60-398.10, while in London, it declined to a low of $377.45, a level last seen on November 7, 2003, they said.

Ready silver (.999 fineness) started the day Rs 635 lower at Rs 9,180 and continued to fall sharply on increased selling, before closing at Rs 9,030, a level not seen since December 2003, showing a whopping Rs 785 fall over the last day's close of Rs 9,815.