Extending its downward journey for the fourth straight session, gold prices tumbled by Rs 200 to hit nearly 11-month low of Rs 27,500 per 10 grams in New Delhi on Thursday amid a weak trend in global markets.
Besides, subdued demand from jewellers and retailers and a weak trend in futures trade weighed on gold prices.
Silver also remained under pressure for the fifth straight day and fell by Rs 500 to Rs 40,500 per kg.
"Weak global cues and falling demand from jewellers on hopes of further dip in prices are pulling down gold prices", jewellers said.
Sentiments remained bearish as gold fell to 16-week low in the overseas markets as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus which has dimmed the metal's appeal.
Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.5 per cent to $1,251.86 an ounce, the lowest since February 4 and silver by 0.9 per cent to $ 18.85 an ounce, the lowest since May 1.
Meanwhile, at the Multi Commodity Exchange, gold for delivery in June was down by 0.45 per cent to Rs 26,712 per 10