Gold hits 3-week low of Rs 20,920

New Delhi: Both the precious metals, gold and silver nosedived Wednesday on heavy offloading, driven by a sharp fall in its prices in global markets. While gold fell by Rs 250 to Rs 20,920 per 10 grams, silver lost Rs 1,100 to settle at Rs 52,500 per kg.

Trading sentiments turned bearish after gold declined to the lowest level in more than three weeks in global markets as some investors sold the metal to raise cash to pay for losses of dropping commodities and equities prices.

In the global markets, gold tumbled by USD 33.10 to USD 1,395.70 an ounce and silver plunged by USD 1.70 to USD 34.34 an ounce.

Besides, on the domestic front end of marriage season also influenced the trading sentiment to some extent.

Silver ready nosedived by Rs 1,100 to Rs 52,500 per kg and weekly-based delivery by Rs 1,225 to Rs 52,060 per kg.

Silver coins followed suit and tumbled by Rs 1,000 to Rs 57,000 for buying and Rs 57,500 for selling of 100 pieces.

In line with the general weakening trend, gold of 99.9 and 99.5 percent purity plunged by Rs 250 each to Rs 20,920 and Rs 20,800 per 10 grams, respectively. The metal had lost Rs 140 Tuesday.

Sovereigns, too, shed Rs 100 to Rs 17,400 per piece of eight grams.