Gold drops on subdued demand, global cues
Mumbai: Gold prices dropped at the bullion market here Monday on hectic selling by stockists as well as subdued demand at the existing levels driven by a further fall in the international markets.
Silver also encountered heavy speculative sell-off, once-again revisiting its Rs 42K per kg-level amid lower industrial off-take.
Standard gold of 99.5 percent purity slumped by Rs 300 to close at Rs 26,840 per 10 gm from last Saturday's closing level of Rs 27,140.
Pure gold of 99.9 percent purity also slid by Rs 340 to end at Rs 26,950 per 10 gm from Rs 27,290.
Silver ready (.999 fineness) tumbled by Rs 780 to finish at Rs 42,220 per kg from Rs 43,000 last weekend.
At the global front, gold extended its fall by one percent on investors' sell-off amid strong dollar, also weighed down by continued concerns over the end to the US Federal Reserve's stimulus programme.
In London, spot gold bid weak at USD 1,284.26 an ounce in early trade and silver also bid lower at USD 19.67 an ounce.