Gold slides on subdued demand amid global weakness

Mumbai, Nov 11: Gold prices dropped further at the domestic bullion market today due to lack of demand from jewellers and retailers amid a sluggish global trend.

Silver also slumped and closed below the key Rs 36,000 per kg mark owing to sustained speculative selling coupled with poor industrial buying. Standard gold (99.5 purity) slumped by Rs 240 to conclude at Rs 25,685 per 10 grams compared to Monday's closing level of Rs 25,925.

Pure gold (99.9 purity) also shed by a similar margin to end at Rs 25,835 per 10 grams from Rs 26,075 previously. Silver (.999 fineness) declined by Rs 170 to finish at Rs 35,940 per kg against Rs 36,110 yesterday.

On the global front, the shiny metal extended its downtrend to trade near a 4-1/2 year low after a strong pull back rally lost steam on strengthening dollar and equities. Spot gold is down at USD 1,150.45 an ounce in early European trade. The metal plunged to a 4-1/2 year low at USD 1,131.85 an ounce last week.

PTI