Gold drops Rs 230, Silver Rs 520 on sluggish demand

Gold prices drifted by Rs 230 to Rs 27,320 per ten grams at the bullion market today owing to slackened demand at prevailing levels amid a weak global trend.

Besides, strengthening rupee against the dollar that made the import of the precious metal cheaper also weighed on gold prices.

The rupee was trading higher by over one per cent at Rs 61.58 against the dollar (intraday) at the forex market.

Silver also dropped by Rs 520 to Rs 37,280 per kg on reduced offtake by industrial units and coin makers.

Bullion traders said subdued demand at current levels and a weak global trend mainly pulled down both gold and silver prices.

Shifting of funds towards equity market and a weakening trend in both the precious metals at futures market also dampened the sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 230 each to Rs 27,320 and Rs 27,120 per ten grams respectively, while sovereign continued to be traded at last level of Rs 23,850 per piece of eight gram.

In a similar fashion, silver ready fell by Rs 520 to Rs 37,280 per kg and weekly-based delivery by Rs 230 to Rs 37,300 per kg.

On the other hand, silver coins held steady at Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.