Gold, silver drop on subdued demand, global weakness

Extending its fall for the fifth straight session gold drifted further at the bullion market here today on subdued offtake by jewellery stockists and traders amid bearish overseas cues.
Silver slipped due to renewed speculative selling as well as reduced industrial buying.
Standard gold (99.5 purity) declined by Rs 70 to close at Rs 27,105 per 10 grams from Friday's closing level of Rs 27,175.
Pure gold (99.9 purity) also moved down by a similar margin to end at Rs 27,255 per 10 grams from Rs 27,325.
Silver (.999 fineness) tanked by Rs 310 to finish at Rs 39,315 per kg compared with Rs 39,625 yesterday.

Globally, the yellow metal settled slightly lower yesterday as traders anticipated a rate hike by the Federal Reserve later this year.
Gold yesterday benefited from a better than expected CPI reading for April in the US, while it saw pressure for the dollar and Yellen's "determination" to raise interest rates later this year.
Gold for June delivery settled down at USD 1,204 an ounce on the Comex division of the NYMEX late yesterday and the July silver contract also ended lower at USD 17.051 an ounce.