Gold slips on poor offtake amid cautious trade

MUMBAI: Gold prices declined modestly after a brief overnight rebound on the domestic bullion market here today due to sluggish demand from stockists as well as retail investors.

In contrast, silver rallied further on the back of sustained industrial buying activity.

Standard gold (99.5 purity) fell by Rs 25 to finish at Rs 26,965 per 10 grams from Monday's level of Rs 26,990.

Pure gold (99.9 purity) also lost by similar margin to end at Rs 27,115 per 10 grams against Rs 27,140.

Silver (.999 fineness), however climbed by Rs 135 to conclude at Rs 41,930 per kg compared to Rs 41,795 yesterday.

On the global front, the precious metal gained further momentum after rebounding from nearly eight-month low on increased speculative buying and also bargain hunting, though the overall sentiment remained very bearish ahead of Fed meet outcome on Wednesday.

Spot gold was bid higher at $ 1,235.80 in early European trade.