Gold prices dropped to a two-week low at the bullion market here on Monday on sustained profit-selling by stockists and investors on the back of subdued global cues.
Silver also tumbled on the hectic speculative selling pressure amid lower industrial demand.
“Traders figure that further weakening of prices of yellow metal at overseas could trigger more demand on the backdrop of wedding and festival season here,” dealers said.
Standard gold (99.5 purity) dipped by Rs 195 to close at Rs 31,400 per 10 gm from last Saturday’s closing level of Rs 31,595.
Pure gold (99.9 purity) also slid by Rs 195 to end at Rs 31,540 per 10 gm from Rs 31,735 previously.
Silver ready (.999 fineness) slumped by Rs 940 per kg to conclude at Rs 61,500 as compared to Rs 62,440 last weekend.
In Europe, gold declined on investors selling amid strong dollar and lingering worries over European growth.
Spot gold was bid down at $1,758.51 an ounce in early trade and silver was bid lower at $33.84 an ounce.