Snapping its six-day, record-making journey, gold's dream to climb the 18-K level was shattered as the yellow metal tumbled on the bullion market in Mumbai on Friday on frantic selling by stockists triggered by a sharp fall in international markets.
The Dubai debt concerns impacted investor's sentiment across the globe, leading to a sharp fall in the yellow metal in overseas market as the dollar rebounded sharply from its 15-month low.
Silver prices too crashed on the impact of the crisis.
"The fall in gold was mainly attributed to the (debt) crisis as there is no demand existing at higher levels. It (fall) would be a blessing in disguise for the consumers as the marriage season is in full swing," traders commented.
Standard gold (99.5 purity) nosedived by Rs 275 per ten grams to end at Rs 17,615 from overnight closing level of Rs 17,890. Pure gold (99.9 purity) slumped by Rs 270 per ten grams to close at Rs 17,705 as against Rs 17,975 on Thursday.
Silver ready (.999 fineness) dropped sharply by Rs 490 per kilo to finish at Rs 28,775 from Rs 29,265 previously.
In Europe, gold dropped nearly 5 per cent to a one-week low below $1,140 an ounce on Friday as dollar rallied on Dubai debt concerns. Spot gold hit a low of $1,136.80 an ounce in early trade as against $1,192.60 on Thursday.
Spot silver was at $18.03 an ounce from $18.61 late in New York on Thursday.