Gold prices fall amid weak demand, global cues

Gold prices dropped at the domestic bullion market in Mumbai on Friday due to a fresh bout of selling by stockists and jewellery traders amid a volatile global trend.

Standard gold of 99.5 per cent purity declined by Rs 125, to finish at Rs 26,855 per 10 grams from Thursday's closing level of Rs 26,980.

Pure gold of 99.9 per cent purity, also declined by the same margin to settle at Rs 27,005 per 10 grams, as against Rs 27,130 on Thursday.

In global trade, the yellow metal struggled to reclaim the psychological US $1200 an ounce-mark amid widespread volatility after the US Federal Reserve pledged to take a patient approach before raising key interest rates.

Elsewhere, silver also pulled back after a strong rally owing to hectic speculative unwinding.

Silver (.999 fineness) slumped by Rs 465 to conclude at Rs 37,025 per kg over Thursday's level of Rs 37,490.

Spot gold was substantially lower at US $1,195 an ounce in early European trade, while silver bid soft at US $15.83 an ounce.