International gold has fallen 18 per cent this year on Cyprus worries and fears that Federal Reserve will end its bond buying programme sooner than expected, completely ignoring tensions in the Korean peninsula. Spot gold was seen at $1,378 an ounce.
Gold futures for June delivery at the Multi Commodity Exchange recovered marginally and was seen trading lower by Rs 120 or 0.47% at Rs 25,559 per 10 grams at 12.00 pm IST.
Silver futures was seen trading lower by Rs 474 or 1.09% at Rs 43,157 per kgs on the MCX.
In Asia, there was some physical buying seen but people are expecting downtrend to continue and expecting that prices may drop further.