Wednesday, May 20, 2009

Surging Equities Hit Gold Prices - May 20, 2009

The gold prices dropped for the third straight day on May 19 as the investors eyes more on stocks and the rupee rather than the precious metal. The gold fell further by Rs 270 at Rs 14,380 per 10 gram in the bullion market after a whopping loss of Rs 430 in the last two sessions. On the other hand, the silver also followed the same trend as the prices declined by Rs 200 at Rs 21,800 per kg due to reduced offtake.

The gold prices fell sharply by Rs 380 per 10 gram following a surge in the stock markets due to the return of the UPA to power.

The metal fell to 918 dollar in Asian region from 930 dollar in the US markets. The World Gold Council had said that the gold imports of India in 2008 dropped 14 per cent to 660.2 tonnes as higher gold prices and volatility hurt demand. The standard gold and ornaments declined by Rs 270 each at Rs 14,380 and Rs 14,230 per 10 gram, respectively. Moreover, the sovereign was also dipped by Rs 100 at Rs 12,300 per piece of eight gram.

The silver ready also dropped by Rs 200 at Rs 21,800 per kg and the weekly-based delivery by Rs 450 at Rs 21,700 per kg. The silver coins slipped by Rs 100 at Rs 28,900 for buying while Rs 29,000 for selling of 100 pieces.

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