Gold, silver drop on profit-selling

MUMBAI: Gold and silver prices dropped at the bullion market here today on heavy profit selling amidst weak jewellery demand at higher levels despite a rally in the international market.

Standard gold of 99.5 per cent purity slipped by Rs 280 to end at Rs 27,415 per 10 grams from Tuesday's closing level of Rs 27,695.

Pure gold of 99.9 per cent purity also slid by a similar margin of Rs 280 to finish at Rs 27,545 per 10 grams from Rs 27,825 previously.

Silver ready (.999 fineness) slumped by Rs 465 per kg to close at Rs 53,035 from Rs 53,500 yesterday.

In New York, gold surged on lower dollar amidst lingering concern about Europe's recent debt downgrades.

Gold for February delivery rose by $24.80 to $1,655.60 an ounce on the Comex division of NYMEX late yesterday.

March silver contract added 61 cents to $30.14 an ounce.