Gold prices touched nearly eight months low by falling Rs 295 per 10 gram in New Delhi on Thursday on panic selling sparked by reports of the precious metal tumbling in the overseas markets.

In Delhi bullion market, gold fell by Rs 295 to trade at Rs 11,350 per 10 gram in evening trading, a level last seen on January 21, this year.

Silver followed the same sentiments and fell to record a loss of Rs 550 at Rs 18,000 per kg.

Selling pressure gathered momentum in late trading, following reports that the gold in London fell $10.05 dollar to $742.40 an ounce after touching $739.05, the lowest since October 10, 2007.

All dollar-priced precious metals, including platinum, gold and silver declined as the dollar strengthened against currencies including the euro, diminishing the appeal of them as a hedge against inflation.

Silver, which traded lower during the day, fell further to record a loss of Rs 550 at Rs 18,000 per kg, as the metal in London fell 0.1 per cent to 10.68 dollar an ounce, the lowest since October 2006.