Gold drifts on demand slowdown; silver dips below 39k

Gold prices dropped further at the domestic bullion market here today due to sluggish demand at existing levels as well as stockists selling amid a weak overseas trend.
On the other hand, silver remained under intense selling pressure and closed below the significant Rs 39,000 mark owing to reduced offtake from consuming industries.
Standard gold (99.5 purity) dropped by Rs 125 to finish at Rs 28,630 per 10 grams from last Friday's closing level of Rs 28,755.
Pure gold (99.9 purity) also shed by a similar margin to end at Rs 28,780 per 10 grams compared to Rs 28,905.
Silver (.999 fineness) plunged by Rs 505 to conclude at Rs 38,850 per kg against Rs 39,355 earlier.

On the global front, yellow-metal fell below USD 1,200 for the first time since mid-February, as comments from Federal Reserve chief Janet Yellen on the likelihood of higher U.S. Interest rates sent the dollar to two-month highs.
Gold fell as much as 1.1 per cent to USD 1,199.60 an ounce, its lowest since February 17, and was down 0.6 per cent at USD 1,204.18 an ounce in early European trade.
Among other precious metals, silver was down 2.1 per cent at USD 15.88 per ounce.