Gold and silver reacted downwards on the bullion market due to profit-taking by stockists in view of fall in the global markets.

Lack of local demand at the current level also affected the gold prices, a dealer said.

Standard gold (99.5 purty) dropped by Rs 50 per ten grams to Rs 9,865 from Rs 9,915 previously. Pure gold (99.9 purity) also finished lower at Rs 9,915 as against the Friday's closing level of Rs 9,965.

Silver ready (.999 fineness) dropped by Rs 200 per kilo to Rs 18,370 from Rs 18,570. In New York, silver fell in a market that appears to have less investment demand than gold, with chart-based selling triggered.

In the meantime, December gold fell 30 cents to $768.40 an ounce on the Comex division of the New York Mercantile Exchange. Comex December silver fell 16.8 cents to $13.635.

In London, gold resumed higher in morning at $768.25 per ounce on Friday as against $764.15 previously but declined afterwards to end in the afternoon at $763.00 per ounce.