Gold, silver drop on heavy selling, low demand

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Gold prices slumped and hit more than two-week lows at domestic bullion market on Friday on heavy selling by stockists and investors amid sluggish demand on the back of strengthening rupee value.

Silver also tumbled owing to hectic speculative sell-off and revisited Rs 54,000 per kg level.

Standard gold of 99.5 per cent purity dropped by Rs 780 to settle at Rs 30,780 per 10 gm from Thursday’s closing level of Rs 31,560.

Pure gold of 99.9 per cent purity dipped by Rs 795 to conclude at Rs 30,930 from Rs 31,725.

Silver ready (.999 fineness) tanked by Rs 1,615 to finish at Rs 54,185 per kg from Rs 55,800 on Thursday.

The rupee maintained the uptrend for the third day and gained 77 paise to close at 65.24 against the dollar, the highest level in almost two weeks, amid surge in equity markets and good capital inflows.

In overseas markets, gold gained in early trade on lower dollar though investors remained cautious ahead of a US labour market report that could give indication about Federal Reserve winding down its stimulus policy.

In London, spot gold was bid up at $ 1,369.41 an ounce in early trade, while silver was bid higher at $ 23.24 an ounce.