MUMBAI, Dec 4: The yellow metal is losing its glitter again. Gold prices dropped below the Rs 4,000 mark - the lowest in five years - in the bullion market here on Thursday. Gold prices have been under tremendous pressure due to heavy sell off by stockists expecting higher arrivals through imports as well as affected by weak international advices.

Standard gold plummeted to Rs 3980 from Rs 4005. 22-carat gold was nominally quoted lower at Rs 3680(Rs 3705). Ten-tola gold bar .999 purity nosedived to Rs 46,600 (Rs 46,900).

Silver prices reacted sharply in the absence of demand from industrial units coupled with increased stockists offerings. Bearish overseas advices also dampened sentiment. Silver ready .999 fineness at Rs 7375 and tenderable silver at Rs 7380, each dropped by Rs 70 from their previous closing of Rs 7445 and Rs 7450 respectively. Raw silver .916 fineness slumped by Rs 75 to Rs 7275 from the last close of Rs 7350.

Said a trader, ``a major reason for the sustained fall in gold prices in India is the decline in global prices, especially after the government liberalised gold imports.'' In Europe, gold prices slipped again on Thursday, falling to fresh 12-1/2 year lows, with dealers citing renewed talk of central bank sales as a factor.

Gold was quoted sharply lower in early Europe at $ 289.25/$ 289.75 an ounce versus $ 292.50/$ 293.00 at Wednesday's London close.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.