In India, silver witnessed the steepest fall in more than 26-month and gold fell to a 10-week low in the bullion market on panic selling by stockists, triggered by a sharp fall in bullion prices in global markets.
While silver fell by Rs 1,440 to Rs 45,400 per kg surpassing previous record fall on October 16, 2008, gold fell by Rs 320 to Rs 20,680 per 10 grams after October 20 last
year.
Market analyst said selling pressure sparked due to the slump in gold prices overseas, which sets the price trend on the domestic front, fell the most in four week.
Gold slumped on Tuesday, together with other base metals and oil, on speculation that stronger dollar and a rally in equities on speculations of an improvement in the global
economy, might pare investment demand for commodities.
The gold in overseas markets recorded a biggest single day fall of USD 33.30 to USD 1381.30 an ounce and silver fell from 30-year high levels by losing 2.84 per cent to USD 29.80 an ounce.
Retail's customer refrained from purchasing gold at existing higher levels further influenced the trading sentiment, they said.
On the domestic front, gold of 99.9 per cent and 99.5 per cent purity dipped by Rs 320 each to Rs 20,680 and Rs 20,560 per 10 grams, respectively. It had surged to the
crucial level of Rs 21,000 on Tuesday. Sovereign also declined by Rs 50 to Rs 16,950 per piece of eight grams.
Silver ready also plunged by Rs 1,440 to Rs 45,400 per kg and weekly-based delivery by Rs 1,420 to Rs 44,950 per kg on poor offtake by industrial units and coins makers.
Silver coins also tumbled from record high by losing Rs 600 to Rs 50,400 for buying and Rs 50,500 for selling of 100 pieces.