Precious metals drop further

Both precious metals, gold and silver, tumbled further on the bullion market here on Thuresday on heavy stockists offerings on the back of weak global cues.

Gold dropped further for the third consecutive day on persistent selling pressure from stockists in view of further fall in world market.

Silver also dropped on the lack of industrial demand. Gold prices extended a 6 per cent decline in New York to hit its weakest level in 13 months after the dollar surged against the euro, while sell-off in equities also drove investors to sell bullion to pay losses.

Gold was traded in Singapore at $725.60 an ounce, down $2.05 from New York’s notional close on Wednesday, having hit an interday low of $718.20 — its lowest level since September 2007.