Gold, silver drops on stockists selling, global cues

MUMBAI: Gold prices dropped further at the bullion market here today on sustained stockists selling as well as sluggish jewellery off-take amid renewed European concern.

Silver maintained the downtrend and slumped due to hectic speculative offloading on the back of subdued industrial demand.

Standard gold of 99.5 per cent purity tumbled by Rs 220 to end at Rs 28,745 per 10 grams from Monday's close of Rs 28,965.

Pure gold of 99.9 per cent purity also plunged by a similar margin of Rs 220 to finish at Rs 28,870 per 10 grams from Rs 29,090 yesterday.

Silver ready (.999 fineness) dipped by Rs 565 to close at Rs 55,710 per kg from Rs 56,275 previously.

In Europe, gold declined on renewed fears of European debt crisis after Standard & Poor's warning of downgrading the entire eurozone nations if no concrete plans to tackle the crisis emerged.

Spot gold eased to $ 1,718.64 an ounce in early trade and silver slipped to $ 31.95 an ounce.