Gold continued its losing spree for the fourth trading session the bullion market here today due to persistent offerings by stockists on the back of fall in overseas markets amidst stronger global equity markets.
Silver, too, dropped further on lack of industrial demand coupled with lower overseas cues.
Investors preferred to take a risk to invest their funds in the current stronger equity markets for quick gains by selling these precious metals, a dealer said.
Gold prices fell in London to a 10-week low as it lost its investment appeal on speculation that financial crisis might be easing on expectations that government efforts will revive the global economy. Gold for immediate delivery slipped as much as $19.08 an ounce or 2.1 per cent to $874.08 and traded at $876.70 in the early trade.
Silver for immediate delivery also dropped to $12.5025 an ounce in London. In Tokyo, spot gold declined by one per cent to $883.57 per ounce today from New York's notional close.
In the local market, standard gold (99.5 purity) dropped by 335 per ten grams to 14,250 from the last weekend's level of Rs 14,585. Pure gold (99.9 purity) also fell to Rs 14,315 from the last week's close of Rs 14,650.
Silver ready (.999 fineness) also dipped by Rs 445 per kilo to Rs 21,340 from Rs 21,785.