New Delhi: Gold prices on Saturday nosedived by Rs280 to Rs16,660 per 10 grams in the bullion market on hectic selling induced by weak global cues.

Standard gold and ornaments weakened by Rs280 each to Rs16,660 and Rs16,510 per ten grams, respectively, while sovereign shed Rs25 to trade at Rs14,000 per eight-gram piece.

Selling pressure gathered momentum as gold prices fell the most in six weeks in New York last evening on dollar rally, which eroded the appeal of the metal as an alternative investment. Continued uncertainty about Greece’s economy helped the greenback rise against the euro.

The overseas markets, which normally set the price trend for the domestic markets here, saw gold lose $19.90 to $1,107.60 an ounce in New York last night.

Traders refraining from purchases on hopes of a further correction in gold prices further dampened the sentiment, marketmen said.

In line with the general trend, silver ready dropped by Rs175 to Rs27,000 per kg and weekly-based delivery lost Rs375 to Rs26,600 per kg.

Silver coins lost Rs100 to Rs33,300 for buying and Rs33,400 for selling of 100 pieces.