Gold prices dropped further to at the domestic bullion market here due to reduced demand from jewellery stockists and traders in the face of prevailing uneasy overseas sentiment.

Moreover, silver also witnessed sluggish offtake from consuming industries.

With global gold prices languish its five—year lows, stockists and investors are keeping a vigil on global developments against the backdrop of the much awaited two—day FOMC policy meet and also growing consensus that the Fed will increase interest rates this year, a bullion trader said.

Standard gold (99.5 purity) slumped by Rs 145 to finish at Rs 24,780 per 10 gm from Monday’s closing level of Rs 24,925.

Pure gold (99.9 purity) also fell by a similar margin to settle at Rs 24,930 per 10 grams as against Rs 25,075 previously.

Silver (.999 fineness) declined by Rs 180 to conclude at Rs 34,290 per kg compared to Rs 34,470 yesterday.

In overseas trade, the metal traded marginally higher and hovered near its lowest level in 2010 reflecting a weak sentiment among investors.

Spot gold was modestly up at $1,094 an ounce in early European trade and silver was quoted little changed at $14.58 an ounce.

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