Gold dips as traders release fresh stock

MUMBAI In a lacklustre session, gold lost its sheen further at the local bullion market on Monday on increased offerings from stockists. Arrival of fresh stocks also forced stockists to sell a part of their holdings to avoid further losses. Marketmen said end of marriage season has kept physical buyers out of window. And hence lower prices also fail to lure buyers. They said some of the funds shifted to the booming stocks to make quick money.

Turning to gold, standard gold (99.5) lost another Rs 40 per 10 gm before ending the day at Rs 8,730. Pure gold (99.9) also declined by same margin at Rs 8,780 per 10 gm. In Delhi, the metal fell to Rs 8,860, down Rs 40 over the previous close of Rs 8,900 per 10 gm. In Kolkata, the precious metal shed Rs 30 at Rs 8,895 followed by a drop of Rs 15 at Rs 8,795 per 10 gm. In London, spot gold was quoted slightly higher at $661.55/662.10 an ounce, compared with $660.90/662.40 in New York on Friday, when prices fell as low as $655.50.

On Thursday, spot gold tumbled as low as $653.40, its weakest since March 20, but that fall stimulated physical interest and fund buying on Friday. Analysts said bullion market sentiment among holders of large speculative accounts of gold was changing, with investors becoming bearish in the near term. The outlook for silver was also not so promising on lower demand from industrial users.

In Delhi, silver ready (.999) declined by Rs 50 at Rs 18,000 per kg followed by a drop of Rs 40 at Rs18,255 per kg.