Gold dips 3-month low, silver drops on global cues

Gold prices dipped over three month lows at the bullion market here today on heavy selling by stockists and jewellers tracking weak international markets.

Silver also dropped nearly two months low owing sustained speculative unwinding speculators and lack of industrial demand.

The bullion market remained closed yesterday due to "Holi" festival.

Standard gold (99.5 purity) slid by Rs 390 to close at Rs 26,140 per 10 grams from Thursday closing level of Rs 26,530. (the prices not settled this low since last Nov 28).

Pure gold (99.9 purity) also fell by a similar margin to finish at Rs 26,290 per 10 grams from Rs 26,680.

Silver (.999 fineness) slumped by Rs 345 per kg to conclude at Rs 36,775 as against Rs 37,120 previously.

Globally, gold fell nearly 3 percent late yesterday after stronger- than-expected US non-farm payrolls fueled expectations the Federal Reserve will raise rates sooner rather than later, and the dollar jumped to an 11-1/2 year high.

In New York, gold for April delivery dropped USD 31.90 to settle at USD 1,164.30 an ounce in late overnight trade, while May silver lost 35.1 cents, to close at USD 15.807 an ounce.