Gold continues to drop on profit-taking, silver plunges

Mumbai: Gold prices slipped further at the bullion market here today on the back of consistent profit-taking by stockists and retail investors amid reduced seasonal buying.

Silver, also slumped owing aggressive offloading from speculators coupled with reduced industrial off-take.

Standard gold (99.5 purity) declined by Rs 125 to conclude at Rs 31,595 per 10 gm from overnight closing level of Rs 31,720.

Pure gold (99.9 purity) fell by Rs 115 to finish at Rs 31,735 per 10 gm from Rs 31,850 yesterday.

Silver ready (.999 fineness) dropped by Rs 625 per kg to end at Rs 62,440 as against Friday's close of Rs 63,065.

Meanwhile, gold rose in overseas trade fuelled by speculation that the European Union authorities are likely to reveal a Spanish rescue program next week as well as supported by weaker dollar.

In New York, gold for December delivery strengthened by $ 7.80 to settle at $ 1,778 an ounce on the Comex dision of the NYMEX late yesterday, while, silver for December contract eased 4 cents to $ 34.64 an ounce.