Gold snaps two-day gains, drops by Rs 60 per 10 grams

Snapping two-day gains, gold prices declined on the bullion market here today due to unloading of stock from stockists on the back of fall in global markets.

Lack of local buying interest also affected the gold prices to some extent.

Silver prices also slipped on poor demand from industrial users.

Surging oil prices above $72 a barrel, raised the metal's appeal as an inflation hedge but a stronger dollar reduced the metal's investment appeal, a dealer said.

Gold for August delivery lost by $3.60 to $950.80 an ounce before ending at $954.70 after moving in a range of $966.70 and $947.50 during the day on the Comex Division of the New York Mercantile Exchange.

In the local market, standard gold (99.5 purity) fell by Rs 60 per 10 grams to Rs 14,645 from Rs 14,705 previously.

Pure gold (99.9 purity) also declined by Rs 65 per 10 grams to Rs 14,710 from Rs 14,775 yesterday.

Silver ready (.999 fineness) dropped by Rs 200 per kilo to Rs 23,275 from Rs 23,475 previously.