Gold price drops on subdued demand amid global uneasiness

Written by PTI | Mumbai | Updated: Jun 2 2014, 23:58pm hrs
Gold prices retreated after a brief pullback and closed below the psychologically important Rs 27,000 per 10 grams at the domestic bullion market here today due to reduced offtake by jewellery stockists and investors.

Silver also dropped further owing to sustained selling by speculators amid weak industrial buying.

Demand for the yellow metal is steadily dropping as retailers have scaled back their purchases on expectation of further fall in prices, being uneasy about the current trends in global trade.

Standard gold (99.5 purity) plunged by Rs 190 to finish at Rs 26,840 per 10 grams from last Saturday's closing level of Rs 27,030.

Pure gold (99.9 purity) also fell to end at Rs 26,990 as compared with Rs 27,180 previously.

Silver (.999 fineness) moved down by Rs 160 to conclude at Rs 40,670 per kg from Rs 40,830 last weekend.

Globally, the shiny metal slumped to four-month low following heavy unwinding by gold funds amid caution ahead of ECB policy meeting and key US macro data outcome.

Spot gold was down at USD 1,244.20 an ounce in early European trade, while silver was trading marginally higher at USD 18.72 an ounce.