Gold declines on weak global trend

Gold declines on weak global trend


New Delhi: Gold prices declined on the bullion market on 1 August on emergence of selling by stockists triggered by a weak global trend.

Standard gold and ornaments fell by Rs30 each at Rs8,830 and Rs8,680 per ten gram respectively.

Trading activity turned weak on reports gold fell in London on speculation stock-market declines tied to the subprime mortgage crisis might lead investors to sell precious metals to make up for losses in other investments.

Gold for immediate delivery dropped $2.55, or 0.4% to $661.75 an ounce in London. Silver fell 8 cents, or 0.6%, to $12.78 an ounce.

Traders said heavy selling in domestic stock markets also had an impact on the bullion prices. The Bombay Stock Exchange benchmark Sensex crashed more than 600 points at close on 1 August.

Marketmen said there was hardly any physical buying due to off-marriage and festival season.

Silver ready dropped by Rs125 at Rs17,450 a kilo and weekly-based delivery by Rs120 at Rs17,530 a kilo. Silver coins, on the other hand, continued to be asked at previous levels of Rs23,400 for buying and Rs23,500 for selling of 100 pieces.

Sovereign also lost Rs25 at Rs7,575 per piece of eight gram.