Gold Posts Fresh Losses, At 8-Year Low Now

Gold prices continued to roll down on the bullion market yesterday to touch their lowest level of Rs 3,900 in eight years in line with New York market where the prices have hit a record low.

A divergent trend was witnessed in the Mumbai bullion market yesterday. Both the precious metals ruled in opposite directions. The undertone of the market remained weak.

Standard gold and 22 carat eased further by Rs 10 and Rs 5 to Rs 3,900 and Rs 3,610 per 10 grams on dull overseas advices and moderate local demand. Gold bisucit prices declined further by Rs 100 at Rs 45,600 per piece of gold bar on reduced consumer offtake.

 

Silver .999 and .916 advanced by Rs 210 each to Rs 7,760 and Rs 7,660 a kg respectively on firm overseas advices and improveddemand. Arrivals remained modest. Delhi advices indicated a firm trend.

In Delhi, standard gold and ornaments lost further by Rs 75 at Rs 3975 and Rs 3825 per ten gram respectively. However, sovereign maintained its previous level at Rs 3,550 per coin of eight gram on scattered buying support and short of supply.

On the other hand, silver prices moved up further on persistent buying by stockists and restricted supply of imported silver. Silver .999 (ready) jumped up by Rs 100 at Rs 7,580 per kilo and its coins by same margin at Rs 11,000/11,100 per 100 pieces.

In New York, the price of gold fell to an 18-year low of 281.35 dollar per ounce (interday), a new low since June 4, 1979, before winding up at 282.85.

Marketmen said the reports of a record fall in the foreign markets dampened the sentiment here and stockist indulged in persistent offering of their holdings in the face of hardly any buying activity.

They said the declining trend in Indian rupee against dollar was another factor influencing the market activity. The All India Sarafa Bazar Association president, Sheel Chand Jain said Australianproducer selling and technical selling by European traders mainly pulled down the prices on the international front. A Delhi-based jeweller, Ashok Verma said buying activity had mostly dried up despite the on going marriage season and local parties were not coming forward for the festival season buying, expecting a further fall in gold prices.

Verma said the prices may go further lower in the wake of persistent fall in rupee value against dollar. It may test Rs 3700 level before a rebound.

In Hong Kong, initially gold prices were down at 283.20-284.60 US dollar per ounce but recovered slightly to finish at 285.30-285.60.

The following were todays quotations: Silver .999 (ready) 7580. Silver coins buyer 11,000 and seller 11,100. Standard gold 3900, ornaments 3750 and sovereign 3550.