Gold drops on global cues, subdued demand

Tracking a weak trend overseas and easing spot demand from jewellers at prevailing levels, gold prices dropped by another Rs 150 to Rs 28,200 per ten gram in the national capital today.
Silver also remained under pressure and lost Rs 200 to Rs 44,900 per kg owing to lack of buying support from industrial units and coin makers.
Traders said besides fall in demand at current levels from jewellers and retailers, weakening trend overseas as the outlook for higher borrowing costs in the US strengthened the dollar mainly influenced the sentiment here.
Gold in Singapore, which normally sets price trend on the domestic front, fell from three-month high by declining 0.6 per cent to USD 1,312.48 an ounce. Silver also fell by 1.3 per cent to USD 20.90 an ounce.

Besides, investors shifting their funds from weakening bullion to surging equity market also dampened the sentiment, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity plunged by Rs 150 each to Rs 28,200 and Rs 28,000 per ten grams respectively, while sovereign remained steady at Rs 24,900 per piece of eight gram.
In line with a general weak trend, silver ready declined by Rs 200 to Rs 44,900 per kg while weekly-based delivery gained Rs 85 to Rs 44,710 per kg on scattered speculators buying.
Silver coins, however, continued to be asked at around previous level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.