Gold drops further by Rs 350,silver sheds Rs 800

Gold prices in New York recorded steep fall of $68 to $1,830.10 ounce on Tuesday.

Gold and silver extended their losses in the bullion market on Wednesday on sustained selling by stockists,triggered by a steep fall in global markets.

Gold rates fell below the Rs 28,000-level by losing Rs 350 to Rs 27,840 per 10 grams. The yellow metal had lost Rs 350 in the previous session. Silver shed Rs 800 to Rs 64,200 per kg after declining by Rs 1,300 yesterday.

Market analysts said profit-booking by stockists at prevailing high levels,driven by reports of a steep fall in global markets,mainly pulled down gold and silver prices.

In addition,sluggish demand at existing levels dampened the trading sentiment to some extent,they said.

Gold prices in New York recorded a steep fall of $68 to $1,830.10 ounce last night. Silver also shed 4.21 per cent to $41.88 an ounce.

On the domestic front,gold of 99.9 per cent and 99.5 per cent purity plunged by Rs 350 each to Rs 27,840 and Rs 27,690 per 10 grams,respectively.

Sovereigns continued to be traded at the previous level of Rs 22,500 per piece of eight grams.

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Similarly,silver ready fell by Rs 800 to Rs 64,200 per kg and weekly-based delivery lost Rs 985 to Rs 63,615 per kg. Silver coins followed suit and tumbled by Rs 1,000 to Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.