Falling equities make gold more attractive

Falling equities make gold more attractive
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First Published: Mon, Aug 06 2007. 03 51 PM IST
Updated: Mon, Aug 06 2007. 03 51 PM IST
PTI
New Delhi: Gold prices picked up on the bullion market on 6 August as investors moved away from plunging equity markets, seeking a safe haven.
Standard gold and ornaments rose by Rs35 each at Rs8,960 and Rs8,810 per ten gram respectively.
On Saturday, 4 August, standard gold and ornaments gained Rs80 each at Rs8,925 and Rs8,775 per ten gram respectively.
Marketmen said a major fall in stock markets forced investors nd retailers to park funds in bullion. The BSE benchmark Sensex slipped more than 432 points in early trade on 6 August, on heavy selling by funds, triggered by weak global trend.
They said firm overseas trend, which normally sets price band in domestic markets, also helped the precious metals to gain further ground.
Gold rose in London as a decline in the value of the dollar buoyed demand for the precious metal as an alternative asset. Gold usually moves in the opposite direction to the dollar, which fell to a four-month low against the Japanese yen and also traded near a record low against the euro today.
White silver prices gained Rs75 at Rs17,850 per kilo and weekly-based delivery by Rs100 at Rs17,900 per kilo. Silver coins also moved up by Rs100 at Rs23,600 for buying and Rs23,700 for selling of 100 pieces.
Sovereign was also higher by Rs25 at Rs7,600 per piece of eight gram.
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First Published: Mon, Aug 06 2007. 03 51 PM IST