Mumbai: Gold dropped sharply at the bullion market on fresh bout of profit-taking by stockists as well as speculators on the back of bearish global cues. Silver extended its slide due to heavy offloading by stockist coupled with reduced industrial demand. Standard gold (99.5 purity) declined by Rs 260 to end at Rs 28,180 per 10 grams against last Saturday's closing level of Rs 28,440.
Pure gold (99.9 purity) dipped by Rs 265 to settle at Rs 28,325 per 10 grams from Rs 28,590. Silver (.999 fineness) slumped by Rs 565 to finish at Rs 45,880 per kg as compared to Rs 46,445 previously. Globally, gold prices slid more than 1 per cent as a rally in stock markets prompted investors to cash in gains after last week's rise to 3-1/2 month highs and as concerns over the eurozone periphery faded. Spot gold for August moved down at USD 1,321.40 an ounce (28 gm) in early European trade, while silver dropped to USD 21.11 an ounce.
