Gold continues to drift on fading demand, global slump

Gold remained under intense selling for the third straight session at the domestic bullion market here today due to sustained unwinding by jewellery traders and investors in the face of sharp bearish overseas tone.
Elsewhere, silver also dropped below the significant Rs 37,000 mark on heavy speculative selling coupled with subdued industrial off-take.
Standard gold (99.5 purity) dropped by Rs 110 to finish at Rs 26,390 per 10 grams from last Friday's closing level of Rs 26,500.
Pure gold (99.9 purity) also fell by a similar margin to settle at Rs 26,540 per 10 grams against Rs 26,650 earlier.
Silver (.999 fineness) declined by Rs 175 per kg to end at Rs 36,830 from Rs 37,005 previously.

In worldwide trade, the shiny-metal slipped to its lowest level in four weeks as funds continued to cut holdings on expectations of imminent Fed rate hike following the US central bank's hawkish statement last week despite weakness in the dollar and equities.
Spot was substantially lower at USD 1,138 an ounce in early European trade, while silver quoted little changed at USD 15.43 an ounce.