In addition, absence of buying by jewellers and retailers on hopes that gold may see further slide in its prices in coming days, dampened sentiments.
Bullion merchants said besides a weak trend in the global market where gold fell to its lowest level since April 2010 as surging dollar eroded demand for safe-haven, considerable fall in demand from jewellers and retailers on hopes of further correction in prices, weighed on the precious metal.
In Delhi, gold of 99.9 and 99.5 per cent purity dropped by Rs 100 each to trade at Rs 25,800 and Rs 25,600 per 10 grams, respectively, a level last seen in August 2011.
Meanwhile, gold prices have declined by a whopping Rs 2,000 per 10 grams since Diwali on October 23.
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Sovereign, however, held steady at Rs 23,600 per piece of eight grams on scattered support.
Silver weekly-based delivery dipped by Rs 330 to Rs 34,400 per kg.
Silver coins, however, recovered by Rs 2,000 to Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces.