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Gold prices fall on scrap selling

Trading sentiment dampened as retail customers preferred to sell old jewellery at existing levels.

twitter-logo PTI   New Delhi     Last Updated: September 9, 2010  | 17:13 IST

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

Trading sentiment dampened as retail customers preferred to sell old scraped jewellery at existing levels.

Customers also postponed their decision to buy new jewellery during the ongoing festival and marriage season, keeping the 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 United States and Europe.

The US stocks advanced Wednesday 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 on Thursday, driving the MSCI Asia Pacific Index higher for the first time in three days.

Gold in overseas markets, which normally set a price trend on the domestic front here, traded marginally lower by 0.04 per cent, to $1,254.70 an ounce from its record level of $1,262.45.

Gold of 99.5 per cent purity fell Rs 100 to Rs 19,270 per ten grams. The metal had climbed to all-time high of Rs 19,470 on Wednesday.

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 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.

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