Gold price turns weak on reduced off-take amid selling

Written by PTI | Mumbai | Updated: Aug 28 2014, 03:06am hrs
Gold prices pulled back after a brief overnight rally at the domestic bullion market here today due to lacklustre demand from jewellers and investors' selling despite firm overseas sentiment.

Silver also plunged below the Rs 43,000 per kg mark following heavy speculative unwinding.

Standard gold (99.5 purity) dropped by Rs 80 to conclude at Rs 27,735 per 10 grams compared to Tuesday's level of Rs 27,815.

Pure gold (99.9 purity) also fell by Rs 70 to end at Rs 27,895 per 10 grams from Rs 27,965.

Silver (.999 fineness) slumped by Rs 285 to finish at Rs 42,955 per kg against yesterday's close of Rs 43,240.

On the global scenario, the shiny metal continued to move higher on the back of bargain-hunting as well as short-covering by hedge-funds, though gains were restricted owing to US interest rates hike speculations.

Spot gold was bid higher at USD 1,283.70 an ounce in early European trade.