Recording its second biggest single-day fall this year, gold tumbled by Rs. 700 to Rs.29,500 per 10 grams in the national capital Friday due to heavy sell-off by stockists triggered by a meltdown in global markets.
Earlier this year, the precious metal had lost Rs.920 on March 1.
In line with the general weakening trend, silver also dropped by Rs.1,745 to Rs.53,755 per kg on poor offtake by industrial units.
Traders said selling pressure gathered momentum after gold declined and headed for its worst week in four in global markets as Federal Reserve Chairman Ben S Bernanke dampened expectations for monetary stimulus.
In London, gold fell by 1.3 % to US$ 1,569.52 an ounce and silver by 1.9 % to US$ 28.05 an ounce.
In addition at the domestic front, sluggish demand among retailers and investors at prevailing higher levels further dampened the trading sentiment here, they added.
Gold of 99.9 and 99.5 % purity tumbled by Rs.700 each to Rs. 29,500 and Rs. 29,300 per 10 grams, respectively. The metal had lost Rs 200 Thursday. Sovereigns followed suit and lost Rs.300 to Rs. 23,900 per piece of eight grams.
Similarly, silver ready plunged by Rs. 1,745 to Rs. 53,755 and weekly-based delivery by Rs. 790 to Rs. 54,550 per kg.
Silver coins followed suit and dropped by Rs. 3,000 to Rs. 60,000 for buying and Rs.61,000 for selling of 100 pieces.