Gold prices fall as stocks surge

Snapping a six-day rally, gold prices fell in the national capital today on profit booking at existing higher levels and funds diverting from bullion to surging stocks.

Gold, which had gained by Rs 510 in the last six trading sessions, fell by Rs 60 at Rs 14,830 per ten grams.

Trading sentiment turned bearish following a fall in the precious metal in overseas markets besides some funds shifting to surging stock markets, traders said.

Gold dropped in Asia as a rally in the dollar continued for a third straight day, reducing the appeal of the precious metal as an alternate investment.

They said reduced offtake by jewellery fabricators due to off marriage season further weakened the trend.

Standard gold and ornaments gained by Rs 60 each at Rs 14,830 and Rs 14,680 per ten grams, respectively. Sovereign held unchanged at Rs 12,400 per piece of eight grams.

However, silver revealed a divergent trend as the metal for spot rose by Rs 50 (rpt) 50 at Rs 22,550 per kg and weekly-based delivery fell by Rs 160 to Rs 22,680 per kg on lack of support from speculators.

Silver coins continued to be traded at last level of Rs 29,100 for buying and Rs 29,200 for selling of 100 pieces.