Gold prices dropped after a three day rally at the domestic bullion market here on emergence of fresh profit-taking from stockists and speculators spooked by overnight global sell-off.
The industrial metal also plummeted and closed below the important Rs 45,000 per kg mark due to frantic speculative unwinding.
Standard gold of 99.5 per cent purity slumped by Rs 265 to conclude at Rs 27,530 per 10 gm from Friday's closing level of Rs 27,795.
Pure gold of 99.9 per cent purity shed by Rs 255 to close at Rs 27,675 per 10 gm from Rs 27,930.
Silver ready (.999 fineness) tumbled by Rs 1,325 to finish at Rs 44,200 per kg as against Rs 45,525 yesterday.
Globally, the yellow metal slipped back sharply to end below the psychologically-important USD 1,400 an ounce, as better-than-expected US jobs data and improving economic data raised concerns about an early exit to Federal Reserve's bullion-friendly bond-buying program.
Gold for August delivery tumbled USD 32.80 to settle at USD 1,383 an ounce on the Comex division of the NYMEX late yesterday and July silver declined 96 cents to USD 21.74 an ounce.
