Gold slides on sluggish demand, silver eases

Mumbai, May 25 (PTI) Gold prices dropped at the domestic bullion market here today due to sluggish demand at higher levels as also profit-taking by stockists and investors. Silver also eased on modest selling by speculators amid lower industrial offtake. Standard gold (99.5 purity) went down by Rs 165 to conclude at Rs 28,895 per 10 gms from overnight closing level of Rs 29,060. Pure gold (99.9 purity) also went down by a similar margin of Rs 165 to close at Rs 29,030 per 10 gms, as against the previous closing of Rs 29,195. Silver ready (.999 fineness) moved down by Rs 60 per kg to settle at Rs 54,360 against Rs 54,420 yesterday. Meanwhile, gold rebounded in European markets today in early trades after four session slide on the back of strengthening euro, though ongoing worries over Greece's exit from euro zone have made investors cautious. Spot gold was bid higher at USD 1,563.71 an ounce in early trade, while silver held almost steady at USD 28.28 an ounce.