Gold declines further on lack of demand

Gold prices declined further for the second trading session on the bullion market here today on lack of demand at higher levels.

Silver prices reacted downwards on poor enquiries from industrial users.

A strong rally in equity market also afftected the gold prices. The benchmark sensitive index shot up by sharply 457 points or by 5.10 per cent over its last close.

Some of the investors might have shifted their funds in equity markets for early gains, a dealer said.

Standard gold (99.5 purity) moved down further by Rs 30 per ten grams to Rs 15,365 from the last weekend's close of Rs 15,395.

Pure gold (99.9 purity) also declined by Rs 35 per ten grams to Rs 15,430 from Rs 15,465.

Silver ready (.999 fineness) eased by Rs 20 per kilo to Rs 22,700 from Rs 22,720.

Meanwhile, in the global market, gold prices edged up in Tokyo as its appeal as a haven against inlation continued to lure investors, but was capped by scrap gold selling and a stock market rally after the US plans to address toxic assets at banks.

Spot gold was quoted slightly higher at $951.50/953.10 an ounce in London up from $950.90 late in New York on Friday.