Gold drops on poor demand; silver ends steady

Mumbai, Sept 1: Gold prices dropped further at the domestic bullion market here today due to reduced off-take from jewellery stockists and traders amid weak global sentiment.

Silver, on the other hand closed virtually steady in the absence of necessary buying support from industrial users. Standard gold (99.5 purity) slipped by Rs 90 to end at Rs 27,770 per 10 grams against Saturday's level of Rs 27,860. Pure gold (99.9 purity) also shed similar margin to finish at Rs 27,920 per 10 grams from Rs 28,010.

Silver (.999 fineness), however, was unaltered at the last weekend level of Rs 43,165 per kg. Globally, the yellow-metal mostly traded range-bound on investors' caution and even failed to find support from the escalating geopolitical tensions in Ukraine as a stronger dollar offset the metal's safe-haven appeal. Spot gold was steady at USD 1,287.70 an ounce in early European trade.

PTI