Gold prices drop on global equity rally

Gold prices on Thursday declined byRs Rs 110 to Rs 27,530 per ten gram in the billion market on sluggishdemand amid weak global trend.

On the other hand, silver prices rose by Rs 200 to Rs 63,800per kg on improved industrial offtake.

Trading sentiment in gold turned bearish after the metaldeclined in global markets as a rally in equities trimmed investor demand forhaven investments.

Gold in global markets, which normally set price trend onthe domestic front, fell by 0.5 per cent to 1,817.22 dollar an ounce.

In additions, sluggish demand at existing higher levels alsoinfluenced the trading sentiment to some extent.

On the domestic front, gold of 99.9 and 99.5 per cent puritydeclined by Rs 110 each to Rs 27,530 and Rs 27,380 per ten grams respectively.It had gained Rs 455 yesterday.

Sovereign ended flat at Rs 22,400 per piece of eight gram.

On the other hand, silver ready added Rs 200 to Rs 63,800per kg and weekly-based delivery by Rs 40 to Rs 62,160 per kg respectively.Silver coins continued to be asked around previous level of Rs 70,000 forbuying and Rs 71,000 for selling of 100 pieces.