Gold weakens amid lacklustre demand; FOMC outcome in focus

Gold prices continued to drift lower for the third straight session at the domestic bullion market here due to reduced offtake by jewellery traders and retailers in the face of bearish overseas sentiment. Elsewhere, silver also retreated after a brief overnight rebound on renewed speculative selling coupled with poor industrial support.

Standard gold (99.5 purity) eased by Rs 25 to conclude at Rs 26,955 per 10 grams as against Tuesday's level of Rs 26,980. Pure gold (99.9 purity) also moved down by a similar margin to settle at Rs 27,105 per 10 grams from Rs 27,130.

Silver (.999 fineness) dropped by Rs 190 to finish at Rs 38,925 per kg compared to Rs 39,115 yesterday. Globally, the yellow-metal traded almost flat during the European session amid heightened nervousness ahead of FOMC meet outcome later in the day as US Federal Reserve is widely expected to wrap-up its asset buying program and also rate hike uncertainty. Spot was little changed at USD 1230.00 an ounce in early trade.