DELHI: The Yellow metal prices squeeze of growing concerns on US Fed interests rates hikes as it got a steep down direction losing Rs 250 on Wednesday going to on a two-month low of Rs 28,650 per 10 grams.

The positive comments from Federal Reserve officials, including Chairman Janet Yellen, have helped boost sentiments that a hike in rate is around the corner. 

Sluggish demand from local markets, along with a weak trend in the overseas markets, only added fuel to the drag.

Silver too got a drag down of Rs 500 to fell at Rs 40,300 per kg due to weak demand from the industrial sectors and coin minters.

The dealers said that the dollar got a bull run on the prospect of a US interest rate hike, which kept the gold prices in shadow.

Globally, gold prices dropped by 0.42 per cent to $1,198.60 an ounce and silver prices got a slash by 0.65 per cent to $16.84 in New York in yesterday.

In Delhi, gold of 99.9 per cent purity and 99.5 per cent purity got down by Rs 250 each to Rs 28,650 and Rs 28,500 per 10 grams, respectively. 

In the same line of metals, silver dropped by Rs 500 to Rs 40,300 per kg and the weekly-based delivery crcked below the Rs 40,000-mark by falling Rs 380 to Rs 39,970 per kg.

Silver coins too got a shot down by Rs 1,000 to Rs 70,000 for buying and Rs 71,000 for selling of 100 pieces.

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