Gold, Silver drops on global cues

Gold fell by another Rs 120 per 10 gram for the third straight session at the bullion market here today following reduced buying interest from stockists and retailers amid lower global cues.

Traders said sentiment turned bearish after gold fell in global markets as the dollar remained firm, with investors expecting the US Federal Reserve to raise interest rates at this week's policy meeting.

Silver too fell by Rs 335 per kg owing to lack of buying support from industrial units.

Standard gold (99.5 purity) dipped by Rs 120 to end at Rs 30,190 per 10 grams from last Friday's level of Rs 30,310.

Pure gold (99.9 purity) also moved down by the similar amount to close at Rs 30,340 per 10 grams against Rs 30,460 last Friday.

Silver (.999 fineness) dropped by Rs 335 per kg to conclude at Rs 37,940 compared to Rs 38,275 previously.

Globally, gold touched its lowest in more than two weeks today as markets remained nervous ahead of a US central bank meeting that could raise interest rates and signal three more increases this year.

Spot gold, which fell for a fourth straight session, was down USD 1,312 an ounce in early European trade.

Among other precious metals, silver was trading unchanged at USD 16.30 an ounce.