Mumbai:- Gold prices dropped after a two-day sharp upmove at the domestic bullion market here on emergence of profit-taking by stockists and retailers amid a sluggish overseas trend.
Elsewhere, silver also fell back sharply following heavy unwinding from speculative traders as well as reduced demand from consuming industries.
Standard gold (99.5 purity) slumped by Rs 370 to end at Rs 29,200 per 10 grams from Tuesday’s close of Rs 29,570. It had touched a 22-month high yesterday.
Pure gold (99.9 purity) also shed by a similar margin to finish at Rs 29,350 per 10 grams as against Rs 29,720.
Silver (.999 fineness) tanked by a whopping Rs 850 per kg to close at Rs 37,500 from overnight level of Rs 38,350.
On the global front, the yellow-metal retreated modestly from its 13-month high on profit-taking by funds and investors ahead of tomorrow s ECB meet amid a broad sell-off in commodities.
The European Central Bank is widely expected to slash its deposit rate deeper into negative territory to stimulate growth.
Spot was trading substantially weak at USD 1,253.40 an ounce in early European trade, while silver softened to USD 15.29 an ounce.
PTI
