Gold falls from record level on scrap selling, global cues

Gold prices fell from record level by losing Rs 100 to Rs 19,370 per ten grams in the national capital today on emergence of scrap gold jewellery selling amid weakening global trend.

Trading sentiment dampened as some retail customers preferred to sell old scraped gold jewellery at existing higher levels amid reports of a marginal fall in global markets.

Retail customers postponed their decision to buy new jewellery for the festival and marriage season at such high levels, which also kept precious metals in negative zone.
   
Investors shifting their funds from bullion to rising equity markets further fuelled the down-trend. The stocks markets across the globe remained bullish, buoyed by greater confidence in the US and Europe.
   
The US stocks advanced last night, sending the Standard & Poor’s 500 Index higher on easing of concerns that Europe’s sovereign debt problems will slow the global economic recovery. Asian stocks gained today, driving the MSCI Asia Pacific Index higher for the first time in three days.
     
Gold in overseas markets, which normally sets a price trend on the domestic front here, traded marginally lower by 0.04 per cent to 1,254.70 dollar an ounce from its record level of 1,262.45 dollar.
   
Gold of 99.5 and 99.5 per cent purity fell by Rs 100 each to Rs 19,370 and Rs 19,270 per ten grams respectively. The metal had climbed to all-time high of Rs 19,470 yesterday. Sovereign followed suit and traded lower by Rs 100 to Rs 15,000 per piece of eight grams.
    
In line with the general weakening trend, Silver Ready declined by Rs 25 to Rs 31,650 per kg, while weekly-based delivery plunged by Rs 145 to Rs 31,375 per kg, on lack of necessary follow up support.
     
Silver coins also lost Rs 200 to Rs 35,000 for buying and Rs 35,100 for selling of 100 pieces.