The lower prices have failed to rekindle physical demand in Asia, traditionally the biggest buyer of gold, and investors have continued to exit exchange-traded gold funds (ETFs).
Gold prices tumbled to a 23-month low by losing Rs. 1,150 to Rs. 25,650 per 10 grams in the national capital on heavy selling by stockists and investors, triggered by a steep fall in overseas markets. All round selling by stockists on free-fall in overseas markets and investors shifting their funds to surging equities mainly pulled down the gold prices to a level last seen on August 9, 2011.