Gold falls by Rs120 as funds shift to equities

Gold falls by Rs120 as funds shift to equities

New Delhi: Gold on Thursday fell by Rs120 to Rs15,880 per 10 gram in the bullion market here as retail customers refrained from buying the metal due to ‘Shraadh´ and investors offloaded part of their holdings to shift funds to rising equity markets.

Standard gold and ornaments dropped further by Rs120 each at Rs15,880 and Rs15,730 per 10 gram, respectively.

Sovereign also declined by Rs50 to Rs12,850 per piece of eight gram.

Gold, which had gained substantial ground in the last few sessions to set a record high level of Rs16,200 per 10 gram, attracted profit selling by major market participants amid a weak global trend, marketmen said.

The metal in London fell below 18-month high of $1,000 an ounce to trade around $992.

“Selling pressure emerged as speculators and general investors went back to surging stock markets," said a gold trader, Rakesh Anand.

Besides, marketmen said retail customers refrained from buying the metal and jewellery due to ‘Shraadh´, an inauspicious fortnight for making new purchases, which also led to a fall in gold.

Meanwhile, silver ready dropped by Rs400 to Rs25,600 per kg and weekly-based delivery by Rs230 to Rs26,430 per kg.

Marketmen, however, maintained that the bullion will start looking up once the ‘Shraadh´ fortnight ends on 18 September and festival season starts.

Silver coins, which had surged to record high levels in last two trading sessions, fell by Rs100 to Rs31,500 for buying and Rs31,600 for selling of 100 pieces.