Gold, silver drops on low demand, global cues

After yesterday's rebound, gold lost its sheen with prices falling by Rs 120 to Rs 28,300 per ten grams at the bullion market today owing to slackened demand at prevailing levels amid weak global cues.
Silver also dropped by Rs 420 to Rs 39,100 per kg on reduced offtake by industrial units and coin makers.
Traders said apart from fall in demand from jewellers and retailers at domestic markets, a weak global trend as strengthening dollar reduced appeal for the precious metals, mainly influenced the sentiment.
Gold in Singapore, which normally set price trend on the domestic front, fell by 0.5 per cent to USD 1,278.27 an ounce and silver by 0.9 per cent to USD 17.84 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 120 each to Rs 28,300 and Rs 28,100 per ten grams respectively. It had gained Rs 120 yesterday.
Sovereign, however, continued to be traded at last level of Rs 24,000 per piece of eight grams.
In line with a general weak trend, silver ready moved down by Rs 420 to Rs 39,100 per kg and weekly-based delivery by Rs 328 to Rs 39,160 per kg.
Silver coins also plunged by Rs 1,000 to Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.