Gold drops on intense selling

Gold remained under selling pressure and fell to nearly three-months low at the domestic bullion market here today on sustained unwinding by stockists and traders spooked by sharp fall overseas.
The industrial metal, silver, too dropped sharply owing to reduced industrial demand.
Standard gold (99.5 purity) fell by Rs 85 to conclude at Rs 27,330 per 10 grams against Thursday's closing level of Rs 27,415.
Pure gold (99.9 purity) also fell by similar margin to settle at Rs 27,480 per 10 grams from Rs 27,565.
Silver (.999 fineness) slumped by Rs 265 to finish at Rs 42,325 per kg compared to Rs 42,590 yesterday.

Globally, the shiny-metal plunged multi-months low following hedge funds selling amid strong dollar and fears over interest rate hike earlier-than expected.
Spot gold was sharply down at USD 1,263.50 an ounce in early European trade.