Gold for Feb delivery was trading at Rs 28,554, down Rs 100 on the MCX. Silver on the other hand was also trading lower at Rs 32,805, down Rs 202 on the MCX.
Gold and silver have been trading lower for the last few weeks and have also reacted to the Fed's decision to taper QE3. Read more about QE3 here
International gold prices are headed for the first fall in almost 12 years. In fact, gold is likely to see the biggest fall in the last 32 years. Gold prices have dropped dramatically in the international market, as investors shift their focus to equities and shun gold.
Persistent weakness in the rupee has ensured that Indian gold prices have not dropped in line with international prices.