Gold plunge Rs 185; silver plummets Rs 798

Going ahead, since we don’t have any major event lined up, the movement of the dollar index, which has been on a recovery spree for the last four weeks, would largely dictate the trend. It has rebound to 104.59 after testing the low at 100.68 levels. It could face a hurdle around 105.5 next and that might help in some recovery.

Gold prices declined by Rs 185 to Rs 55,520 per 10 grams in the national capital on Monday amid weak global trends, according to HDFC Securities.

The yellow metal had ended at Rs 55,705 per 10 grams in the previous trade.

Silver also plummeted by Rs 798 to Rs 63,227 per kg.

"Spot gold prices in the Delhi markets traded at Rs 55,520 per 10 grams, down Rs 185 per 10 grams," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

In the overseas market, gold and silver were trading lower at USD 1,811 per ounce and USD 20.75 per ounce, respectively.

"COMEX gold prices fell in the Asian trading hours on Monday to their weakest levels in nearly two months after recent hot inflation reinforced expectations that the US Fed will continue to hike rate in the first half of the year," Sriram Iyer, Senior Research Analyst at Reliance Securities, said.