Gold drops further by Rs 260 per 10 grams in early trade

MUMBAI: Gold prices dropped by Rs 260 per 10 grams to Rs 11,895 in early trade on the bullion market here on Thursday on persistent offerings by stoc
kists on the back of weak global advices.
Silver also moved down further on lack of industrial demand.
Gold prices extended a six per cent decline in New York to hit its weakest level in 13 months after the US dollar surged against the euro, while sell-off in equities also drove investors to sell bullion to pay losses.
Gold was traded in Singapore at USD 725.60 an ounce, down USD 2.05 from New York's notional close on Wednesday, having hit a low of USD 718.20, its lowest since September 2007.
In the local market, standard gold (99.5 purity) dropped further by Rs 260 per 10 grams to resume at Rs 11,895 from Rs 12,155 and pure gold (99.9 purity) also opened lower at Rs 11,965 as against Rs 12,230 yesterday.
Silver ready (.999 fineness) also declined by another Rs 110 per kilo to Rs 17,870 from 17,980.