Gold snaps four-day gains, drops Rs 280

Gold prices fell by Rs 280 to Rs 18,270 per ten gram in the bullion market today on emergence of widespread selling by stockists in the face of a weakening global trend.

Selling pressure gathered momentum as gold fell to 1,205.60 dollar an ounce in London from the record 1,226 dollar.

Marketmen said the precious metal fell as stockists indulged in reducing their holdings in tandem with a weakening global trend.

In addition, fall in demand by retailers at existing higher levels also added to the pressure on prices.

Standard gold and ornaments, which was setting fresh records almost every day, plunged by Rs 280 each to Rs 18,270 and Rs 18,120 per ten gram respectively while sovereign lost Rs 50 at Rs 14,300 per piece of eight gram.

Silver too tumbled by Rs 900 to Rs 29,000 per kg. Silver ready tumbled by Rs 900 to Rs 29,000 per kg while weekly-based delivery gained Rs 50 to Rs 29,500 per kg on scattered buying by speculators.

Silver coins remained steady at Rs 34,600 for buying and Rs 34,700 for selling of 100 pieces.