Gold prices drop on global cues

  New Delhi, July 30
Gold prices fell globally to near a five-and-a-half year low on Thursday as the dollar strengthened ahead of US economic data, but in India, the price varied between five and five-and-a-half year low.

Internationally, gold prices fell more than 1 percent close to their weakest level since early 2010.

In India, gold prices dropped by Rs.200 to Rs.25,090 per 10 gram.

"In India, the price is hovering between five and five-and-a-half year low. Theoritically with such lower prices, there should be great surge in demand. But there are media reports that it will further go down and people are withhelding their purchases expecting it to fall further," Pankaj Parekh, former vice-chairman, Gems and Jewellery Export Promotion Council (GJEPC) told IANS.

"Even if the price does not go down further and stabilises, we will see surge in demand," he added.

Silver price also dropped by Rs.150 to Rs.34,050 per kilogram.