Gold prices dropped to a week low at the domestic bullion market on Tuesday on hectic profit-taking by stockists and investors amid subdued local demand at the prevailing levels driven by bearish global cues.

Silver also slipped owing to speculative-selling following reduced industrial buying.

Standard gold of 99.5 per cent purity fell by Rs 650 to close at Rs 31,295 per 10 grams from Monday’s closing level of Rs 31,945.

Pure gold of 99.9 per cent purity also dipped by Rs 655 to finish at Rs 31,440 per 10 grams as against Rs 32,095.

Silver ready (.999 fineness) slid by Rs 610 to end at Rs 50,020 per kilo from Rs 50,630 previously.

Globally, gold declined on strong dollar, as also investors started to factor the expectations that the US Federal Reserve will maintain its stimulus measures well into early 2014.

Spot gold was bid lower at $1,344.64 an ounce in early trade, while spot silver bid down at $22.34 an ounce.

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