Gold lost some of its shine as an attractive investment option in the bullion market as the prices fell by Rs 250 to Rs 12,000 per 10 gm as the metal melted in the global markets on speculation that dollar gains might spur sales.
With today’s fall, gold, in tune with the weak global trends, has taken a hit of Rs 750 in the last four trading sessions. The metal had crossed the Rs 12,000-level on February 20.
Marketmen said selling pressure gathered momentum as the metal fell in London to an eight-week low on speculation that dollar gains might spur sales by stockists. The precious metal lost nearly $10 dollar to $862.50 an ounce, the lowest since June 13.
They said some investors shifted funds from the bullion market to volatile equity markets for quick benefits. Trading sentiments in silver also dampened as the metal in London fell 37 cents to $15.83 an ounce, the lowest since January 23.
In the domestic market, the silver ready plunged by Rs 950 to Rs 22,797 a kg and weekly-based delivery by Rs 970 to Rs 22,425 a kg. Silver coins fell by Rs 100 to Rs 27,700 for buying and Rs 27,800 for selling of 100 pieces.
Standard gold and ornaments dropped Rs 250 at Rs 12,000 and Rs 11,850 per 10 gm, respectively. Sovereign fell by Rs 125 at Rs 10,400 per piece of eight gram.
Oil down to $118
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BS Reporter adds: Crude oil prices fell to $118 per barrel on Friday, heading for its fourth weekly decline in five weeks, due to a stronger dollar and speculation that slower economic growth will curb demand for fuels.
Oil prices have dipped nearly 5 per cent this week and over 19 per cent from the record high of over $147 per barrel four weeks ago. The lower prices have also driven down the price of the basket of crude oil that Indian refiners buy to below $116 per barrel on Thursday, the latest day for which data are available. The Indian basket of crude oil follows the prices of oil traded in commodity exchanges around the world.
The lower prices are expected to decrease the “under-realisations” of the India’s oil marketing companies which sell fuels at below production costs. As oil prices increase the oil companies’ cost of producing petroleum products rises but retail prices in the country are capped by the government.