Mumbai: Snapping a six-day long rally, gold on Wednesday fell by Rs200 to Rs16,000 per 10 gram in the bullion market here on emergence of selling at existing higher levels amid a weak trend in the global markets.
However, marketmen said that the fall is temporary and gold will bounce back soon, once the marriage and festival season starts on 19 September.
All India Sarafa (bullion) Bazaar president Sheel Chand Jain said, “Gold is still moving in a firm mode and the current fall seems to be temporary as retail customers are not purchasing the metal due to Shraadh”, an inauspicious fortnight in Hindu mythology for making fresh purchases.
Gold, which touched an all-time high of Rs16,200 per 10 gram on Tuesday after the global rates breached the psychological $1,000 an ounce level, attracted selling by investors and speculators amid reports of a falling trend in overseas markets.
The metal in London fell from its high of over $1,000 to $996 an ounce. The domestic bullion markets, which normally move in tandem with the international trend, reacted immediately and closed lower.
Standard gold and ornaments fell by Rs200 each at Rs16,000 and Rs15,800 per 10 gram respectively. Sovereign held unchanged at Rs12,900 per piece of eight gram.
However, silver coins maintained its peak levels of Rs31,600 for buying and Rs31,700 for selling of 100 pieces on sustained small buying by jewellers.
Silver ready remained unchanged at Rs26,000 per kg, while weekly-based delivery lost Rs340 at Rs26,660 per kg on profit selling by speculators.
Marketmen said investors were seen returning to the rising equity markets for quick gains. The 30-share BSE Sensex rebounded almost 80 points in late morning trade today.