Gold drops on consistent selling, silver slumps

Silver also slumped owing to speculative selling pressure on the back of lower industrial demand.

Standard gold (99.5 purity) shed by Rs 165 to close at Rs 27,940 per 10 gm from Tuesday's closing level of Rs 28,105.

Pure gold (99.9 purity) also dipped by a similar margin of Rs 165 to finish at Rs 28,070 per 10 gm from Rs 28,235.

Silver ready (.999 fineness) tanked by Rs 1,110 per kg to end at Rs 52,440 as against Rs 53,550 previously.

In Europe, gold continued its fall on broad-based sell-off following heightened worries over political turmoil in Greece.

Spot gold was bid down at USD 1,534.54 an ounce in early trade, silver also bid lower at USD 27.44 an ounce.