Gold dropped at the domestic bullion market today and settled below the Rs 27,000 per 10 gm level due to reduced demand from stockists and jewellers amid global bearishness.
Silver also witnessed frantic speculative unwinding and plunged below the key Rs 45,000 per kg mark.
Standard gold of 99.5 per cent purity shed Rs 270 to finish at Rs 26,760 per 10 gm from Tuesdays closing level of Rs 27,030. Pure gold of 99.9 per cent purity fell by Rs 255 to conclude at Rs 26,900 per 10 gm,as compared to Rs 27,155.
This is golds second biggest fall this year since April 15,when it had plunged by Rs 1,160 to Rs 26,640 per 10 grams.
Gold in the London market,which normally sets the price trend,dropped to three-week low as a stronger dollar curbed demand for an alternative investment and bullion holdings declined,also dampened the sentiment,they said.
The US Dollar Index,a measure against six major currencies,reached the highest level since July on Wednesday.