Gold recorded its biggest fall of Rs 1,110 to reach 12,000 per 10 gram in late trading in the bullion market in New Delhi on Thursday on nervous selling by stockists, sparked by weakening global trend.
The metal plummeted in London to $905 from its peak of $1,033 on March 17.
The precious metal crashed after reports of gold heading for its biggest weekly drop in 25
years in London as a strengthening dollar eroded the precious metal's appeal as an alternative investment.
Marketmen said speculative sellers indulged in reducing their pending positions, fearing more falls in the course, leading to the fall in the local market.
The fall in gold came at a time when the market is passing through an off-marriage season and virtually no physical buying.