Gold plunged on back of sharp dip in oil prices, followed by strengthening of dollar dragging gold lower. Traders, speculators stepped aside ahead of the Swiss referendum on central bank bullion assets.
Bullion was affected on stronger dollar and plunging oil prices restrained demand for the yellow metal.
Gold sentiment has suffered this year due to anticipations that the Federal Reserve will tighten policy and hike the interest rate which will dampen the gold sentiment.
In India, the Reserve Bank of India has scrapped the 80:20 Gold Import Scheme. This schemes states that at least 20 per cent of the gold had to be exported before importing fresh gold.
International gold prices dropped to $1,167 an ounce. Gold Futures on the Multi Commodity Exchange closed at Rs 25,794 per 10 grams, lower by Rs 453.