Gold drops on subdued demand, global cues

MUMBAI: Falling for the fourth straight session, gold prices drifted further at the bullion market here today due to reduced offtake by traders and stockists in the face of lacklustre overseas sentiment.

In contrast, silver recovered marginally following mild offtake by consuming industries.

Standard gold (99.5 purity) fell by Rs 130 to conclude at Rs 29,530 per 10 grams from Wednesday's closing of Rs 29,660.

Pure gold (99.9 purity) also declined by a similar margin to Rs 29,680 per 10 grams against Rs 29,810 earlier.

However, silver (.999 fineness) edged up by Rs 5 to finish at Rs 41,355 per kg compared to yesterday's level of Rs 41,350.

Globally, gold fell to a two-week low after the last sweep of opinion polls before Britain's referendum on EU membership began gave the campaign to stay in the bloc a slight edge.

Spot gold was down 0.1 per cent at $1,265.30 an ounce in early trade, after hitting $1,260.36, its lowest since June 9.

Among other precious metals, silver rose 1 per cent to $ 17.39.