Gold price drops on renewed stockists selling, weak global cues

Written by PTI | Mumbai | Updated: Jul 31 2014, 00:44am hrs
Gold prices fell back after a brief overnight bounce at the bullion market here today on emergence of fresh selling by stockists and jewellery traders amid global sluggishness.

The industrial metal, silver also drifted to close below Rs 45,000 per kg mark due to heavy unwinding by speculators coupled with subdued industrial off-take.

Standard gold (99.5 purity) slumped by Rs 190 to finish at Rs 27,790 per 10 grams compared to Tuesday's level of Rs 27,980.

Pure gold (99.9 purity) also shed by a similar margin to end at Rs 27,935 per 10 grams from Rs 28,125 previously.

Silver (.999 fineness) skidded by Rs 195 to conclude at Rs 44,965 per kg as against Rs 45,160 per kg yesterday.

On the global front, the shiny metal slipped below the key support USD 1,300 an ounce mark as investors remained on the sidelines ahead of the Federal Reserve's policy meet outcome later in the day and second quarter GDP growth data.

Spot gold was trading almost flat at USD 1,299 an ounce in early European trade.