Gold lost its glitter with prices dipping below Rs 28,000 level to trade at Rs 27,680 per ten gram in futures trade on Saturday as speculators engaged in reducing their positions after the precious metal crashed over 5% in the global market.
Gold prices for delivery in June fell below psychological Rs 28,000 level by losing Rs 500, or 1.77% to trade at Rs 27,680 per ten gram, its lowest level since March 21 last year, in a turnover of 9,040 lots at the Multi Commodity Exchange.
On similar lines, the metal for delivery in far-month August also traded Rs 433, or 1.51% to Rs 28,202 per 10 gm in 608 lots.
Globally, gold prices slid below $1,500 an ounce for the first time since July 2011 to trade at $84, or 5.38% lower at $1,477 an ounce in New York in Friday's trade.
"Besides, weak trend in the global market, short-selling by speculators on hopes that slide might continue in coming days, also weighed on the gold prices", said Rakesh Anand, a Delhi-based trader.
Market analysts said a weak trend in the overseas markets where the precious metal sank over 5% on Friday on signs that investors are favouring the dollar and equities as the global economy recovers, dragged gold prices down at futures trade in New Delhi.
Besides, a weak trend in the domestic bullion market where gold prices recorded the biggest ever fall of Rs 1,250 to Rs 28,350 per ten gram in the national capital too dampened the trading sentiments, they said.