Gold drops by Rs 210 on global cues

Marketmen said selling pressure gathered momentum as the dollar strengthened and oil declined, reducing the metal's appeal as a hedge against a drop in the dollar and inflation.

They said brisk selling by stockists triggered by falling trend in global market mainly attributed to a fall in gold prices. Sluggish demand in view of off marriage and festival season also dampened the market sentiment to some extent.

 

In London, gold fell $7.85 to $885.05 an ounce. Futures for July delivery also declined by $10.30 to $887.80 an ounce on the Comex division of the New York Mercantile Exchange.

In domestic market, standard gold and ornaments fell by Rs 210 each to Rs 12,495 and Rs 12,345 per 10 gm, respectively, and sovereign lost Rs 25 to Rs 10,025 per piece of eight gm.

A similar trend was extended in white metal as silver ready dropped by Rs 670 to Rs 24,000 per kg and weekly-based delivery by Rs 635 to Rs 23,935 per kg, respectively.

On the other hand, silver coins remained flat at Rs 27,100 for buying and Rs 27,200 for selling of 100 coins.

Meanwhile, in the bullion market in Mumbai, silver closed at Rs 24,280 per kg, the same as yesterday Standard gold was Rs 12, 320per 10 gm, down from Rs 12, 365 yesterday while pure gold traded at Rs 12, 380 per 10 gm, from Rs 12, 420.