Gold prices drifted by Rs. 230 to Rs. 27,320 per ten grams at the bullion market on Thursday owing to slackened demand at prevailing levels amid a weak global trend.
Besides, strengthening rupee against the dollar that made the import of the precious metal cheaper also weighed on gold prices.
The rupee was trading higher by over one per cent at Rs. 61.58 against the dollar (intraday) at the forex market.
Silver also dropped by Rs. 520 to Rs. 37,280 per kg on reduced off-take by industrial units and coin makers.
Bullion traders said subdued demand at current levels and a weak global trend mainly pulled down both gold and silver prices.
Shifting of funds towards equity market and a weakening trend in both the precious metals at futures market also dampened the sentiment, they said.
In the national capital, gold of 99.9 and 99.5 per cent purity plunged by Rs. 230 each to Rs. 27,320 and Rs. 27,120 per ten grams respectively, while sovereign continued to be traded at last level of Rs. 23,850 per piece of eight gram.
In a similar fashion, silver ready fell by Rs. 520 to Rs. 37,280 per kg and weekly-based delivery by Rs. 230 to Rs. 37,300 per kg.
On the other hand, silver coins held steady at Rs. 61,000 for buying and Rs. 62,000 for selling of 100 pieces.
