Gold snaps seven-day rally; falls from record high

NEW DELHI: Gold prices fell to Rs 31,300 per 10 gram from the all-time high of Rs 31,400 it touched on Monday, breaking its seven-day rising spree due to reduced offtake at higher levels amid a weak trend overseas.

A weak trend in overseas markets, where gold declined on speculation that the Federal Reserve chairman will not commit the central bank to further stimulus even as investment holdings expanded to a record, also dampened the trading sentiment.

In Singapore, gold fell 0.4% to $1,657.50 an ounce. The price had reached $1,676.90 on Monday, the highest since April 13.

Silver also fell by the same margin to Rs 57,600 per kg on lack of demand from industrial units and coin makers. Silver futures on Tuesday fell by 603, or 1%, to Rs 59,427 per kg as speculators booked profits after recent hefty gains amid weak trend overseas.

Crude oil futures were range bound in Asia on Tuesday as investors weigh the impact of tropical storm Isaac on energy supply and oil refining and await central bank decisions in the US and Europe on economic growth.

On the NYMAX, light, sweet crude futures for delivery in October traded at $95.36 a barrel at 0644 GMT, down $0.11 in the Globex electronic session.