KARACHI  - Gold slipped by Rs 129 to close at Rs 47,485 per 10 grams in the local market Tuesday as its international price dropped to $1,573 an ounce, market sources said.

According to Karachi Sarafa Association official, tola (11.664 grams) price also decreased by Rs 150 to close at Rs 55,400. Silver closed higher at Rs 822.85 per 10 grams.

Reuters adds from New York: Gold fell 1 percent amid heavy trading volume on Tuesday, as the euro’s slide on worries over Spain’s debt prompted investors to sell the precious metal, which fell more than oil and agricultural commodities.

Bullion rose in early trade and then erased those gains as the euro tumbled below $1.25 to hit its lowest in nearly two years after credit agency Egan-Jones downgraded Spain’s sovereign credit rating. U.S. equities trimmed gains and other commodities dropped.