Gold falls as import duty concerns fade

Gold falls as import duty concerns fade
PTI
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First Published: Thu, Jul 09 2009. 05 03 PM IST
Updated: Thu, Jul 09 2009. 05 03 PM IST
Mumbai: Gold fell to pre-budget levels in the bullion market today as traders shrugged off import duty hike concerns and shifted their funds to more attractive sectors.
The precious metal lost Rs80 at Rs 14,700 per ten gram, while silver fell by Rs100 to Rs21,800 per kg on sustained selling by stockists amid retailers refrained on expectations of more fall in the prices.
Gold, which had gained significant ground after the Union Budget doubled the import duty on the precious metal, lost stream as traders preferred to buy fundamentally strong stocks in volatile equity markets.
A weakening trend in the US bullion markets last night after the gold fell to 904.20 dollar an ounce, a lowest since 6 May, from $920.70 further fuelled the downtrend.
The global bullion markets, which normally set price trend on the domestic front here, remained under pressure after crude oil led a drop in commodities.
As the selling pressure gathered momentum, standard gold and ornaments fell by Rs80 each at Rs14,700 and Rs14,550 per ten gram respectively. Sovereign also lost Rs25 at Rs12,300 per piece of eight gram.
Silver ready fell by Rs100 at Rs21,800 per kg and weekly based delivery by Rs200 at Rs21,540 per kg. Silver coins were continued to be asked at unchanged level of Rs28,900 for buying and Rs29,000 for selling of 100 pieces.
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First Published: Thu, Jul 09 2009. 05 03 PM IST
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