Gold Plunges To 15-Month Low

Gold prices slipped to 15-month lows on the domestic markets yesterday, with dealers anticipating prices to drop further on account of heavy arrivals through imports and a weakening trend in the international market.

In London, the yellow metal opened at $359.25 an ounce, the lowest fixing since October 7, 1993, in a heavily bearish bullion market.

According to market circles, standard gold prices slid below the Rs 5,000 (per 10 gm) level to close at Rs 4,910. International gold prices are expected to remain low, marketmen said and this would force prices on the local markets to remain subdued.

The demand for gold is, however, expected to improve and remain strong in the coming months till the marriage season in May 1997. The Bombay Bullion Association (BBA) president M L Damani said that while the demand for gold is expected to remain strong, import levels may dip on account of the falling prices. Domestic gold prices have dipped Rs 125 per 10 grams in the course of last week.

A divergent trend was witnessed in the local bullion market yesterday. Yellow metal weakened while white metals ruled slightly firm yesterday. The market sentiment was weak.

Gold standard and 22 carat gold declined by Rs 40 each to Rs 4910 and Rs 4540 per 10 gram, respectively, on weak overseas advices, reduced demand and brisk arrivals.