Gold prices plummeted sharply for the second straight day and closed below the psychologically key Rs 30,000 mark at the bullion market here today on sustained unwinding by jewellery stockists and investors.
Domestic sentiment turned bearish suddenly after the precious metal slumped from its 15-month high in overseas trade as the dollar recovered from a slide to its lowest in over a year amid renewed concerns over US interest rate hike.
Moreover, stockists and traders preferred to take out some profits in the face of sudden global volatility, a bullion trader said.
The yellow-metal has gained 5.20 per cent in the recent leg of the rally.
Elsewhere, silver also drifted lower on the back of heavy speculative selling as well as subdued industrial buying.
Standard gold (99.5 purity) plunged by Rs 280 to end at Rs 29,915 per 10 grams from Tuesday's closing level of Rs 30,195.
Pure gold (99.9 purity) also fell by a similar margin to finish at Rs 30,065 per 10 grams against Rs 30,345 earlier.
Silver (.999 fineness) dropped by Rs 390 per kg to conclude at Rs 41,210 as compared to Rs 41,600 yesterday.
In worldwide trade, the shiny-metal traded lower at USD 1,285.70 an ounce mark in early European trade, while silver quoted weak at USD 17.355 an ounce.
