Wednesday, October 22, 2008

Gold Falls By Rs 210 As Economy Recover - Oct 22, 2008

Gold prices tumbled by Rs 210 at Rs 12,750 per 10 gram in the national capital market on Tuesday following investors renewed interest in the surging equity markets, amid a weakening trend on the global front. Selling pressure picked up as investors preferred to park their funds in firming equity markets for quick gains.

A similar weakness was noticed in silver that lost Rs 100 at Rs 17,600 per kg.Sentiment also turned bearish as the precious metal in international markets, which normally set price trend in domestic markets here, fell as dollar firming against leading currencies eroded demand for the gold.

Marketmen said, the yellow metal declined in Asia below $800 an ounce as equities advanced reducing interest in gold as a safe haven asset.Gold fell one per cent to $781.20 an ounce in Asia while silver rose by 1.3 per cent at $9.91 an ounce.Silver followed the same trend on reduced offtake by stockists and industrial units.

Silver ready lost Rs 100 at Rs 17,600 per kg and weekly-based delivery by Rs 140 at Rs 17,480 per kg. Silver coins continued to be asked at previous level of Rs 28,400 for buying and Rs 28,500 for selling of 100 pieces.Standard gold and ornaments dropped by Rs 210 each at Rs 12,750 and Rs 12,600 per 10 gram respectively. Sovereign held unchanged at Rs 10,600 per piece of eight gram.

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