Gold Drops On Profit Booking

After two-day rising spree, gold declined by over Rs 100 on the bullion market in New Delhi on Jan 10 on profit selling by stockists, who felt the record rise in the precious metal was overdone. Trading sentiment turned bearish following reports of a weakening trend in global markets. The metal traded lower in London at $877 an ounce compared to closing at $894 in the US markets. In the bullion in New Delhi, the market opened lower by Rs 110. The metal recovered moderate ground but only to reduce the losses and closed at Rs 11,250 per 10 gram, down by Rs 100. The prices had touched a record high of Rs 11,350 in the previous trading session.

Standard gold and ornaments fell by Rs 100 each at Rs 11,250 and Rs 11,100 per 10 gram respectively. Sovereign maintained its peak level at Rs 9,050 per piece of eight gram. A similar trend was noticed in silver on reduced offtake by silver coins makers and industrial units purchasing. Silver ready fell by Rs 150 at Rs 19,950 per kilo and weekly-based delivery by Rs 130 at Rs 20,370 per kilo. Silver coins also lost Rs 100 at Rs 25,300 for buying and Rs 25,400 for selling of 100 pieces.