Gold extends fall on weak buying, global uneasiness

MUMBAI: Gold prices drifted further at the domestic bullion market today due to reduced offtake from jewellery stockists and local investors, amid uneasiness in global markets.

Silver also dropped sharply owing to heavy speculative sell-off and sluggish industrial demand.

Standard gold (99.5 purity) slipped by Rs 50 to conclude at Rs 26,350 per 10 grams against Wednesday's closing level of Rs 26,400.

Pure gold (99.9 purity) also fell by a similar margin to end at Rs 26,500 per 10 grams from Rs 26,550 previously.

Silver (.999 fineness) tanked by Rs 255 to finish at Rs 37,135 per kg compared to Rs 37,390 yesterday.

Globally, the shiny metal remained under selling pressure for the second straight day on funds selling as well as investors caution ahead of an upcoming Swiss referendum on central bank bullion assets.

Spot gold was bid lower at $ 1,195.00 an ounce in the early European trade.