Gold prices drop on subdued demand, global cues

Gold prices declined by Rs 120 to Rs 27,070 per 10 grams at the bullion market today due to sluggish demand from jewellers amid a weakening trend overseas.
Silver followed suit and traded lower by Rs 135 to Rs 36,750 per kg on reduced offtake by industrial units and coin makers.
Traders said apart from low demand from jewellers and retailers, a weakening global trend mainly kept precious metals under pressure.
Gold in London, which normally sets price trend on the domestic front, fell by 0.87 per cent to USD 1,193.40 an ounce and silver was down by 1.01 per cent to USD 16.11 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 120 each to Rs 27,070 and Rs 26,870 per 10 grams, respectively.
It had lost Rs 95 in last two sessions.

Sovereign also eased by Rs 100 to Rs 23,600 per piece of eight grams.
Tracking weakness in gold, silver ready declined by Rs 135 to Rs 36,750 per kg and weekly-based delivery fell by Rs 125 to Rs 36,140 per kg.
Silver coins also fell by Rs 1,000 to Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.