Gold prices tumbled by Rs 230 to close at Rs 15,300 per ten grams in the bullion market today as investors and speculators liquidated their holdings to invest in rising stock markets.
Selling also gathered momentum after the precious metal in overseas markets melted as the American currency strengthened in the forex, eroding demand for the gold as an alterate investment.
Gold in London lost $6.97, or 0.7 per cent, to $932.53 an ounce and silver by 0.8 per cent to $13.59 an ounce.
Equities worldwide surged on speculation that US President Barack Obama's administration will revive growth with a plan to rid banks of distressed assets.
A similar weakeness was noticed in silver and its coins on lack of buying in the absence of marriage and festival season. Silver ready and weekly-based delivery dropped by Rs 400 each to Rs 22,100 and Rs 22,500 per kg, respectively. Its coins fell by Rs 100 to Rs 28,300 for buying and Rs 28,400 for selling of 100 pieces.
Standard gold and ornaments plunged by Rs 230 each to Rs 15,300 and Rs 15,150 per ten grams, respectively. Sovereign, however, remained flat at Rs 12,400 per piece of eight grams.