Gold prices slumped sharply today to end the day with a loss of Rs 370 per 10 grams to Rs 12,155. The price of Gold in local markets dropped due to dramatic collapse in the international prices.

In the local market, standard gold (99.5 purity) ended at Rs 12,155 and pure gold (99.9 purity) also went down by Rs 355 per 10 grams to Rs 12,230 from Rs 12,585 yesterday.

Along with this, Silver also eased further on lack of industrial demand. Silver ready (.999 fineness) corrected by another Rs 70 per kilo to Rs 17,980 from Rs 18,050.

In coming days, Indian traders are expecting a fall below the crucial 12,000 rupees level that could speed up the demand of precious metal in view of Diwali and Dhanteras festivals.

It may noted that the metal has plunged 7.8% in the past five days despite the fact that Asian money market rates fell and governments worldwide has made trillions of dollars available to banks, encouraging lending.