Gold plunges Rs 4,100, silver falls Rs 6,250

New Delhi: Gold prices dropped by Rs 4,100 to Rs 1,21,800 per 10 grams in the national capital and slipped below $4,000 an ounce in the global markets on Tuesday as easing US-China trade tensions dampened safe-haven appeal. According to the All India Sarafa Association, the precious metal had closed at Rs 1,25,900 per 10 grams on Monday.

In the local bullion market, gold of 99.5 per cent purity also tumbled by Rs 4,100 to Rs 1,21,200 per 10 grams from its previous close of Rs 1,25,300 per 10 grams. Silver prices also registered a steep fall of Rs 6,250 to Rs 1,45,000 per kilogram on Tuesday.

The white metal had ended at Rs 1,51,250 per kg on Monday, as per the association. In the international markets, spot gold remained under pressure, declining by $94.36, or 2.37 per cent, to $3,887.03 per ounce.

Spot silver also witnessed steep losses, falling 2.85 per cent to hit an intra-day low of $45.56 per ounce. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said: “Gold dipped further on Tuesday and extended losses due to diminishing safe haven demand. Selling accelerated and the yellow metal prices slid to a three-week low.”