PTI
 
New Delhi, Jun 2: Tracking a weak overseas trend, the gold prices tumbled on the bullion market on Thursday on stockists selling in the face of restricted buying and closed with a hefty loss of Rs 270 at Rs 9,600 per 10 gram.

Trading activity dampened on reports that gold in Asia has declined as dollar gained against other leading currencies like euro, reducing the appeal of the precious metal as an alternative asset.
 
The dollar gained as traders increased bets the Federal Reserve will keep raising interest rates, after minutes of its latest meeting were released yesterday.

Gold fell as much as $10.07, or 1.6 per cent, to $635.13 an ounce. Gold shed 11 per cent from a 26-year high of $730.40 an ounce on May 12.

The impact was felt in domestic markets here, which were already in bearish mood following off marriage and festival season. Standard gold and ornaments dropped by Rs 270 each at Rs 9,600 and Rs 9,450 per 10 gram respectively. Sovereign was also down by Rs 50 at Rs 8,050 per piece of eight gram.

Silver also remained weak on reduced offtake by stockists and industrial units. Silver ready plunged by Rs 600 at Rs 18,700 per kilo and weekly-based delivery by Rs 200 at Rs 19,700 per kilo as speculators refrained from enlarging their positions at these juncture.