World Gold Prices Hit 19-Yr Low

Domestic gold markets slid under pressure from developments across the international markets. Standard gold prices fell by Rs 100 per 10 gm yesterday, touching Rs 4,050 per 10 gm even as international gold prices fell to their lowest levels in the past 19 years.

Local gold prices have now fallen 4.71 per cent over the past six trading days from Rs 4,250 per 10 gm on August 20 to Rs 4,050 per 10 gm yesterday.

The international gold markets have come under fire with huge sales from Russia, which is seeking to avert its crisis by selling gold in the global markets. International gold prices fell to $ 271.13 per troy ounce during intra-day trading yesterday (the lowest level since May 30, 1979) but by 18:30 IST gold prices in London stood at $ 275 levels.

Besides the Russian crisis, the poorer demand for the yellow metal across the Asian markets has also affected markets further. The latest World Gold Council demand trends shows that the economic and currency crisis in Asia continued to keep demand below normal levels in Indonesia, Malaysia, Singapore, Hong Kong and North Asia (including China).

Local marketmen said that demand for gold at the Indian markets would remain strong in the festive season. ``Prices are not expected to fall further from these levels though international trends will have an impact,'' M L Damani, president of the Bombay Bullion Association said. According to reports, selling from Russia is expected to keep the international markets weaker in coming days, with estimates of 100 tonnes of gold having already been sold.