Gold futures prices today plunged 6 per cent to hit lower circuit at Rs 26,250 per 10 gm, a level last seen in September 2011 on sustained offloading by speculators after it dipped to over two-year low overseas.
At the Multi-Commodity Exchange, gold for delivery in June fell sharply by Rs 1,675, or 6 per cent, to hit lower circuit at Rs 26,250 per 10 gm, the lowest level since September 2011.
It recorded a business turnover of 62,884 lots.
Similarly, gold prices for delivery in August declined by Rs 1,700, or 6 per cent, to hit a lower circuit at Rs 26,643 per 10 gm, in a business volume of 2,910 lots.
At the Delhi bullion market, gold prices fell by Rs 750 to close at over 15-month low of Rs 27,600 per 10 gm today.
Analysts attributed persistent fall in gold prices at futures trade to speculative selling by participants after the yellow metal dropped to a two-year low on fears of central bank sales and less monetary stimulus, while holdings on global exchange-traded funds hit their lowest in more than a year.
“Meltdown in gold prices in the global market, where it dropped to a two-year low mainly weighed on the precious metal prices at futures trade here,” said a Delhi-based analyst Shree Bhagwan Garg.
A weakening trend on the domestic spot markets as a falling rupee hit buying activity also weighed on the bullion prices, they said.
Meanwhile, gold dipped below $1,400 mark by dropping $90.70, or 6.14 per cent, to $1,386.30 an ounce in London today.