Gold drops Rs 110 on easing demand from jewellers

Gold prices fell by Rs 110 to Rs 27,050 per 10 grams at the bullion market on easing demand from jewellers and retailers even as the metal strengthened overseas.

However, silver prices recovered by Rs 150 to Rs 36,500 per kg on scattered buying from industrial units.

Traders said slackened demand from jewellers and retailers at prevailing higher levels mainly weighed on gold prices but a better trend overseas, restricted the fall.

Gold in Singapore, which normally sets price trends on the domestic front, rose 0.4 per cent to USD 1,183.83 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity declined by Rs 110 each to Rs 27,050 and Rs 26,900 per 10 grams, respectively. It had shed Rs 30 in Saturday's trade.

The Sovereign, however, continued to be asked at last level of Rs 23,700 per piece of eight grams for want of support.

On the other hand, silver ready recovered by Rs 150 to Rs 36,500 per kg and weekly-based delivery by Rs 230 to Rs 36,180 per kg. Meanwhile, silver coins remained flat at Rs 55,000 for buying and Rs 56,000 for selling of 100 pieces.