Gold prices slipped back below the key Rs. 28,000 per 10/grams mark in the bullion market in Mumbai on Tuesday due to fresh bouts of selling from stockists and investors, combined with overall sluggish demand.
Silver also dropped sharply owing to frantic speculative unwinding. Standard gold (99.5 purity) slumped by Rs. 225 to finish at Rs. 27,960 per 10 grams from Monday's closing level of Rs. 28,185.
Pure gold (99.9 purity) also tumbled by a similar margin to end at Rs. 28,110 per 10 grams from Rs. 28,335.
Silver (.999 fineness) dipped by Rs. 335 to conclude at Rs. 45,535 per kg as compared to Rs. 45,870 yesterday.
On the global front, the shiny metal edged lower due to investors' caution ahead of key US economic data later in the day and rallying equities, but manged to hold the $ 1,300 an ounce support level, aided by anticipation of increased geopolitical risks.
Spot gold was lower at $ 1,307 an ounce in early European trade.