MUMBAI: Gold prices continued to drop at the bullion market here today due to consistent offloading from stockists on the back of mute local buying interest amid bearish overseas trend.
Silver also slumped on heavy profit taking by speculators as well as subdued industrial demand.
In overseas, the precious metals declined on strengthening dollar valuations over late last week's comments from a Federal Reserve official on reversing easy money policy.
In the domestic market, standard gold (99.5 purity) slid by Rs 140 per 10 grams to close at Rs 20,695 from last weekend's closing level of Rs 20,835.
Pure gold (99.9 purity) also dipped by Rs 145 per 10 grams to finish at Rs 20,795 per 10 grams as against Rs 20,940 previously.
Silver ready (.999 fineness) plunged by Rs 610 per kg to end at Rs 55,820 from last Saturday's closing level of Rs 56,430.
In Europe, spot gold bid was at USD 1,415.85 an ounce in early trade as compared to USD 1,427.75 late in New York on Friday. US gold futures for April delivery also fell USD 9.90 an ounce to USD 1,416.30.
Silver was bid at USD 36.66 an ounce as against USD 37.29.
