Gold, silver drop on reduced demand

Gold prices dropped further at the domestic bullion market here today following reduced demand from traders and retailers.
Elsewhere, silver retreated owing to sluggish industrial offtake.
Standard gold (99.5 purity) fell by Rs 180 to conclude at Rs 27,725 per 10 grams from Tuesday's closing of Rs 27,905.
Pure gold (99.9 purity) also dropped by a similar margin to finish at Rs 27,875 per 10 grams from Rs 28,055.
Silver (.999 fineness) declined by Rs 205 to close at Rs 39,315 per kg as compared to Rs 39,520 yesterday.
On the global front, gold rose in early trade, after falling more than 1 percent in the previous session, as European shares dropped and China's monetary move to boost liquidity and help combat slow growth. China's central bank cut the amount of cash that banks must hold as reserves, the first industry-wide cut since May 2012.

Spot gold was bid up at USD 1268.30 in early European trading and silver also moved up at USD 17.42 an ounce.