Gold drops further on weak global trend

Maintaining its downward march for the second straight day, gold prices fell by Rs 50 to Rs 16,650 per 10 grams in the bullion market today on sustained selling amid a weak global trend.

Silver also remained weak and lost another Rs 50 to Rs 27,500 per kg on reduced off take by industrial users.

Marketmen said sustained selling by stockists following a fall in demand at the existing high levels amid weakening global trend mainly led to the fall.

The precious metal lost its sheen further as retail customers stayed away from fresh purchases expecting prices to drop further while investors shifted funds to rising equity markets for quick gains, they added.

Standard gold and ornaments fell by Rs 50 each to Rs 16,650 and Rs 16,500 per 10 grams, respectively, while sovereign was unchanged at Rs 13,950 per piece of eight gram.

Silver ready declined by Rs 50 to Rs 27,500 per kg and weekly-based delivery by Rs 70 to Rs 27,330 per kg.

Silver coins continued to be asked around the previous level of Rs 33,400 for buying and Rs 33,500 for selling of 100 pieces.