Gold gains on modest demand, silver slips on selling

Gold prices gained further at the bullion market here today on modest demand from traders and retailers amid stray wedding season off-take. Silver, however, dropped on speculative selling on the back of reduced industrial demand. Standard gold of 99.5 per cent purity moved up by Rs 35 per 10 gm to end at Rs 30,445 from Thursday's closing level of Rs 30,410. Pure gold of 99.9 per cent purity added by Rs 30 per 10 gm to finish at Rs 30,580 from Rs 30,550 yesterday. However, silver ready (.999 fineness) fell by Rs 155 to conclude at Rs 58,785 per kg from Rs 58,940 previously. In overseas markets, gold was almost flat on narrow trade amid weak sentiment after the European Central Bank underlined the downside risks to the region's economy. In Europe, gold was bid steady at USD 1,670.24 an ounce in early trade and spot silver also bid flat at USD 31.47 an ounce.