Gold drops by Rs 180 on low demand, global cues

New Delhi: Gold prices fell by Rs 180 to Rs 28,270 per ten gram at the bullion market, snapping its two-day rising streak, as demand from jewellers and retailers eased at prevailing levels amid a weak global trend. Silver, however, recovered by Rs 450 to Rs 38,450 per kg on increased offtake by industrial units and coin makers.

Traders said besides fall in demand at existing levels from jewellers and retailers at domestic markets, a weak global trend as investors weighed prospects for higher US interest rates mainly kept pressure on gold prices. Gold in New York, which normally sets price trend on the domestic front, fell 0.72 per cent to USD 1,273.80 an ounce in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs 180 each to Rs 28,270 and Rs 28,070 per ten gram respectively. The precious metal had gained Rs 350 in the previous two trading sessions.

Sovereign, however, continued to be traded at last level of Rs 24,000 per piece of eight gram in limited deals. On the other hand, silver ready recovered by Rs 450 to Rs 38,450 per kg and weekly-based delivery by Rs 50 to Rs 38,000 per kg. Meanwhile, silver coins enquired at previous level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.