The yellow metal dropped Rs 400 at Rs 11,550 per 10 gram, a level last seen on Sept 11, on brisk selling by stockists and investors after the Bombay Stock Exchange benchmark Sensex recorded a second steepest fall in its history. The stock markets nosedived and bullion prices collapsed after the Reserve Bank of India kept interest rates unchanged and downgraded the national economic growth to 7.5 per cent.
Standard gold and ornaments dropped by Rs 500 each at Rs 11,950 and Rs 11,700 per 10 gram respectively. Sovereign fell by Rs 50 at Rs 10,450 per piece of eight gram.
Silver also drifted by Rs 450 to Rs 37,650 per kg.
Gold prices declined by Rs 100 to Rs 28,200 per 10 grams at the bullion market on Friday
Gold prices zoomed to an all-time high of Rs 13,850 per 10 gram in the national capital on Wednesday as plunging stock markets and deepening global financial crisis spurred demand for the metal as a safe hedge.
A sharp decline in sales and prospects of a grim future have resulted in a fall in jewellery stocks.
After two days of gains, gold prices fell by Rs 60 to close at Rs 27,400 per 10 gram in New Delhi on Wednesday due to slackened demand from jewelers and retailers amid absence of cues from global markets.
Silver also dropped by Rs 300 to Rs 38,400 per kg.
Gold exchange-traded funds are back in the limelight. After a dull three-month period, a sudden slump in the US stock market last week has investors flocking to buy gold. In the past one week alone, gold prices have increased nearly 15 per cent in the international market.
Marketmen said the precious metal sparkled as an secondary investment option in global as well as in domestic markets amid a plunge in stock markets following deepening of credit crisis in the US. Standard gold and ornaments which started on a promising note with a Rs 1,000 each higher at Rs 12,915 and Rs 12,765 per 10 gram, continued to rise and settled Rs 1,205 each higher at Rs 13,120 and Rs 12,970 per 10 gram respectively.
In Delhi bullion market, gold fell by Rs 295 to trade at Rs 11,350 per 10 gram in evening trading, a level last seen on January 21, this year.
Gold prices drifted by Rs 100 to Rs 28,400 per ten grams at the bullion market today as demand from jewellers and retailers eased at existing levels amidst a weak global trend.
Will a US recession tip the entire metals complex, including Gold Prices, sharply lower in 2008...? Add the falling dollar to rosy growth forecasts from China and what do you get? If you guessed higher commodity prices, you get a gold star. Yet among the big investment institutions, there's mixed opinion about what metals prices will do in 2008.
Silver also eased by Rs 50 to Rs 38,800 per kg.
Gold prices came under renewed selling pressure in the pre-New York opening hours on Wednesday morning, this time responding to a declining crude oil and rising US dollar value. Values quickly fell towards the lower $900's as participants continued to be frustrated by the metal's recent lack of response to outside drivers and by investor apathy. The current pause is still seen as a period of consolidation and the risk of a breach of the $900 level remains in place.
Gold prices on Monday recovered by Rs 25 to trade at Rs 27,475 per 10 grams at the bullion market on pick-up in demand from jewellers.
Gold demand fell by 8 per cent to 45 tonnes on this year's Akshaya Tritiya, an auspicious day in the Hindu calendar for new purchase of long-term assets, due to a rise in prices, compared with 48.9 tonnes in a year-ago period, the World Gold Council said.
With the listing of Reliance gold ETF on the National Stock Exchange (NSE) on Wednesday, four fund houses (Benchmark, UTI Mutual Fund and Kotak Mutual Fund being the other three) currently offer gold ETFs to Indian investors.
Silver followed suit and eased by Rs 225 to Rs 42,775 per kg on reduced offtake by industrial units and coin makers.
Silver also declined by Rs 100 to Rs 49,580 per kg on reduced offtake by industrial units.
Silver also drifted by Rs 600 to Rs 39,100 per kg.
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In line with overall trends, silver ready traded lower by Rs 350 to Rs 36,950 per kg and weekly-based delivery by Rs 480 to Rs 36,945 per kg.
Key to Modi's plan will be the interest rates offered for gold deposits.
Silver followed suit and lost Rs 350 at Rs 43,950 per kg on reduced offtake by industrial units and coin makers.
Silver followed suit and recovered Rs 400 to Rs 34,100 per kg.
More interest rate cuts by the US Federal Reserve to protect its slowing economy are likely to strengthen gold prices further with the metal being a safe haven for investors having offered handsome returns in the last year-and-a-half.
Government on Friday hiked the import tariff value on gold and silver to $433 per 10 grams and $699 per kg, respectively, taking into account the volatility in the precious metals' global prices.
Gold in Singapore, which normally sets price trend on the domestic front, traded a shade higher at $1,294.35 an ounce from $1,293.75 on August 1.
Silver also lost Rs 550 to Rs 36,350 per kg on poor offtake by industrial units and coin makers.
Silver also extended its rally for the eighth day.
After touching a high of Rs 32,01/10g in October 2013, gold prices fell to a low of Rs 26,900/10g in June
The beginning of the new year is is the right time to buy gold. But invest in gold funds, or bars, and not jewellery.
Traders said sentiment turned somewhat weak after gold fell in global markets ahead of US payrolls data that may show employers added more workers last month, boosting the case for an increase in borrowing costs in the largest economy.
The government has retained 10% duty on import of the yellow metal.
Gold plunged sharply to hit a three-month low.
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Silver declined by Rs 200 to Rs 38,550 per kg.
Gold for August delivery jumped $8.70 to settle at $1,292.90 an ounce on the Comex division of the NYMEX late on Friday.
Gold prices recovered by Rs 40 to Rs 26,800 per ten gram at the bullion market in in New Delhi on Tuesday on scattered buying by jewellers and retailers to meet ongoing wedding season demand and a firming global trend.
Traders said stockists selling on sluggish demand at prevailing higher levels mainly kept pressure on the two commodities.
Traders said sentiments remained weak due to fall in demand from jewellers and retailers amidst gold retreating in global markets.
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