Gold drifts to three-month low on falling demand

Continuing the short-term downtrend, gold prices slumped to hit a three-month low on the domestic bullion market here on Tuesday due to consistent unwinding from jewellery stockists and traded amid lack of local buying support.

Silver, on the other hand, moved up owing to renewed industrial offtake.

Standard gold (99.5 purity) dropped by Rs 100 to finish at Rs 27,100 per 10 grams from last Saturday's level of Rs 27,300.

Pure gold (99.9 purity) also fell by Rs 95 to settle at Rs 27,350 per 10 grams compared to Rs 27,445.

Silver (.999 fineness), however, edged up by Rs 85 to conclude at Rs 42,450 per kg against weekend closing level of Rs 42,365.

Globally, the yellow-metal remained under heavy sell-off after the dollar surged to 14-month high against a basket of major currencies amid easing geopolitical tensions.

Spot gold was lower at $1,254.60 an ounce in early European trade.