Gold, silver slip on reduced offtake

Gold prices fell further at the domestic bullion market here on reduced offtake from stockist and retailers amid subdued local buying interest. Silver slipped following speculative selling amid lower industrial demand. Standard gold (99.5 purity) dropped by Rs 155 to close at Rs 26,700 per 10 grams from Friday's level of Rs 26,855.

Pure gold (99.9 purity) also dipped by a similar margin of Rs 155 to finish at Rs 26,850 per 10 grams as against Rs 27,005 previously. Silver (.999 fineness) fell by Rs 120 per kg to end at Rs 37,510 as compared to Rs 37,630 last Friday. Globally, gold inched up in early trade after a three-day losing streak, as the dollar's ascent paused and uncertainty persisted over the timing of the first Federal Reserve rate increase in a decade.

In London, spot gold was quoting up at USD 1,167.17 an ounce in early trade. The metal had dropped to USD 1,158.77 last Friday, its lowest since Oct.13, when the dollar soared to its highest level in more than two months. Spot silver also followed gold's upside, rising at USD 15.87 an ounce.