Gold drops on subdued demand amid weak global sentiment

Snapping two-session gaining trend, gold prices dropped at the domestic bullion market today due to reduced offtake by stockists as well as selling by investors due to sluggish overseas cues. Silver moved down further owing to lackluster demand from industrial users.

Standard gold (99.5 purity) slumped by Rs 180 to conclude at Rs 26,415 per 10 grams from Wednesday's closing level of Rs 26,595. Pure gold (99.9 purity) also fell by a similar margin to end at Rs 26,565 per 10 grams compared to Rs 26,745.

Silver (.999 fineness) lost Rs 55 to settle at Rs 36,960 per kg against Rs 37,015 yesterday. On the global front, the yellow metal traded marginally higher after recovering from overnight fall amid caution ahead of key US economic data release later in the day.

Spot gold was up at USD 1,194.30 an ounce in early European trade.