Gold suffered the biggest fall of the year so far today here and lost Rs 410 to reach Rs 16,390 per ten grams on frantic selling sparked by a steep fall in global markets.
Standard gold and ornaments plummeted by Rs 410 each to Rs 16,390 and Rs 16,240 per ten grams, respectively, while sovereign lost Rs 100 at Rs 13,900 per eight-gram piece.
The precious metal in the overseas markets, whose price sets the trend on the domestic front here, plunged to its lowest in three months as the dollar's rally reduced gold's appeal as an alternative investment.
The US currency rose to its highest in more than eight months against the euro amid concerns of widening government deficits that may hamper economic recovery in Europe.
Gold recorded its biggest single day fall in the Asian markets to touch $1,048 per ounce-- the lowest since November 3, 2009.
Retail customers also refrained to purchase and waited for more declines, which further influenced gold's downfall.
Similarly, silver dropped by Rs 1,150 to Rs 24,600 per kg in line with the weak trend, after its prices in Asia fell to five-month lows.
Weekly-based delivery too fell by Rs 1,090 to Rs 24,340 per kg. Its coins also plunged by Rs 400 to Rs 32,900 for buying and Rs 33,000 for selling of 100 pieces.
