Gold drops on weak demand, silver slips below Rs 53K mark

Consistent selling by stockists and investors following global bearishness continues

Gold prices slipped further on the domestic bullion market today due to consistent selling by stockists and investors following global bearishness amid reduced demand from jewellery makers.

Silver also witnessed heavy unwinding from speculators and traders for a second day and plunged below the key Rs 53,000 per kg mark.

Standard gold of 99.5 per cent purity dropped Rs 140 to finish at Rs 30,280 per 10 gm from Tuesday's closing level of Rs 30,420.

Pure gold of 99.9 per cent purity fell Rs 165 to conclude at Rs 30,420 per 10 gm from Rs 30,585.

Silver ready (.999 fineness) slumped Rs 1,050 to end at Rs 52,635 per kg from Rs 53,685 previously.

Globally, the shiny metal tumbled on investor selling on receding fears of US military strike against Syria as well as uncertainties over Federal Reserve rolling back its easy money policy.

Gold for December delivery shed $22 to settle at $1,364 an ounce on the Comex division of the NYMEX late yesterday.

Silver December contract lost 70 cents to close at $23.02 an ounce.