Gold prices today declined by Rs 643 to Rs 27,326 per 10 grams from the record levels due to fresh selling by speculators at existing high levels in tandem with a weak trend in the Asian region.

Gold futures climbed to an all-time high of Rs 29,091 per 10 grams yesterday.

A bounce back in equity markets led to diversion of investor funds from bullion and further influenced the trading sentiment to some extent, dealers said.

On the Multi Commodity Exchange, October gold lost Rs 643, or 2.30%, to Rs 27,326 per 10 grams, clocking a business volume of 20,439 lots.

The December contract dropped by Rs 635, or 2.24%, to Rs 27,601 per 10 grams, with a business volume of 2,6061 lots.

Market analysts said a weak trend in the Asian region as a rebound in equities trimmed demand of investors seeking to protect their wealth against declining currencies and economic turmoil, mainly pulled down gold futures prices here.

Bullion dropped from a record $1,921.15 an ounce yesterday as the dollar advanced for a sixth day against a six-currency basket, including franc, after the Swiss Central Bank set a ceiling on the exchange rate.

The gold in Asian, which normally sets the price trend in domestic market here, fell 2.6% to $1,827.57 an ounce.

Silver prices declined by Rs 1,304 to Rs 63,301 per kg in the futures trade today on profit-booking by speculators amid a weak Asian trend.

On the back of investors booking profits and shifting their funds to local equities that are witnessing an uptrend, influenced the market sentiment, dealers said.

On the Multi Commodity market, silver for December-month contract fell by Rs 1,304, or 2.01% to Rs 63,301 per kg in an open interest of 12,745 lots.

The white metal for March month contract lost 956, or 1.44% to Rs 65,001 per kg in a business volume of 275 lots.

Traders said the silver prices fell sharply on emergence of profit booking driven by a weak Asian trend and shifting funds to rising equity markets.

They said the precious metal fell in the upcountry markets, as a rebound in global equities trimmed demand of the metal by investors seeking to protect their wealth against declining currencies and economic turmoil.

Meanwhile, silver in Singapore fell 1.4% to $41.42 an ounce.  - Source: PTI