Gold sellers announced special discounts for Dhanteras 2014.
Representational ImageReuters

Gold prices fell to a four-year low to ₹ 26,500 per 10 grams, falling by ₹600 in Delhi as the dollar strengthened to its highest since 2010. The precious metal reached its lowest in the global market in the last four years, Press Trust of India reported.

In India, the end of the festive season also added to the yellow metal's price drop as demand fell.

Silver prices also fell by a four-year record of ₹ 1,700 and stood at ₹ 36,150 per kilogram.

According to Reuters, the surge in the dollar came after the Bank of Japan expanded its stimulus spending to add trillions of yen to the national economy.

"The main reason for gold's fall is the strength in the dollar after the BOJ's desperate efforts to weaken the yen," Jeffrey Sica, president and chief investment officer at Sica Wealth Management, told Reuters.

"Gold could fall further in the short term as the dollar could rise more in the short term, but gold should eventually benefit as a hedge against the uncertainties and economic turmoil brought by central-bank actions," he added.

Among the other precious metals, platinum fell 0.7 percent to $1,229.5 an ounce, while palladium rose 1.8 percent to $788.5 an ounce.