Gold drops for fifth day on global cues, sluggish demand

Continuing its losing streak for the fifth straight day, gold tumbled by Rs 250 to over six-week low of Rs 26,150 at the bullion market today, largely due to weak global trend amid subdued demand from jewellers.
Besides, in the global market, the precious metal was trading at two-week lows.
Silver also shed Rs 150 to Rs 34,600 per kg on reduced offtake by industrial units and coin makers.
Traders said gold fell amid a weak global trend ahead of the US payrolls report later today, which could bolster the case for an interest rate hike after private jobs data showed an increase in hiring, diminishing appeal of the precious metal.

Globally, gold fell 0.2 per cent to USD 1,111.83 an ounce in Singapore.
Besides, slackened demand from jewellers and retailers at domestic spot market in view of ongoing inauspicious fortnight of 'Sharadhas', dampened the sentiments, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs 250 each to Rs 26,150 and Rs 26,000 per ten grams, a level last seen on August 13. The precious metal had lost Rs 850 in last two days.
Sovereign also shed Rs 100 at Rs 22,100 per piece of eight grams in limited deals.
Similarly, silver ready also fell by Rs 150 to Rs 34,600 per kg and weekly-based delivery traded lower by Rs 170 to Rs 34,645 per kg.

Silver coins too came under pressure and lost Rs 1,000 at Rs 49,000 for buying and Rs 50,000 for selling of 100 pieces.