Gold prices plummeted by 5 per cent or Rs3,702 to Rs69,016 per 10 grams in futures trade on Tuesday after the government proposed to hike the securities transaction tax on futures and options trade.On the Multi Commodity Exchange, gold contracts for August delivery plunged Rs3,702 or 5.09 per cent to Rs69,016 per 10 grams in a business turnover of 12,397 lots. Silver prices also tumbled more than 5 per cent in futures.

On the Multi Commodity Exchange, silver contracts for September delivery declined by Rs4,704 or 5.27 per cent to Rs84,499 per kg in a business turnover of 25,350 lots. Finance Minister Nirmala Sithraman on Tuesday proposed to increase the rate of securities transaction tax (STT) on futures and options (F&O) trade to discourage retail investors’ participation in the risky instrument.