Gold loses Rs 245 in three days

Parallel to the crude oil price fall, the spot gold prices are also heading south and recorded a hefty fall of Rs 245 per 10 gram in three days.

Standard gold price has fallen to Rs 7,945 on Thursday as against last Monday's close of Rs 8,190 per 10 gram. The closing price of pure gold was Rs 7,985 per 10 gm in the Mumbai bullion market.

On the bullion market, the stockists continued to sell in the face of a weakening overseas trend.

The yellow metal has lost Rs 30 per gram on Thursday when compared to yesterday's closing price of Rs 7,975 (standard) and Rs 8,015 (pure).

"Gold prices have come down after long rally to the peak, since the fall in crude oil price in US. Now the crude price is hovering around $ 60 per barrel as against the last week's price of $64 per barrel. Now the gold price is at good buying level and the market is expecting it to continue in the coming days also," Prithviraj Kothari, director, Riddhi Siddhi Bullion, and member, Mumbai Bullion Association said.

He added, "All the major currencies are weak against the US dollar, thus pulling the precious metal prices down. The metal continued to roll-down in other Asian markets also to touch near three week low level on speculation."

In international markets, gold has declined for the past four sessions and is down about 5.5 per cent since reaching a 25-year high last month.

Silver price is down by Rs 55 at Rs 14,160 per kg as against yesterday's close at Rs 14,215. Silver had registered an all-time-high price on the last Friday at Rs 14,375 per kg.

Since then the price is recording slight fall every day but it has not gone down below Rs 14,000 mark. According to Suresh Hundia of Hundia Exports, "International price is reflecting in the domestic market also. But the present silver price is still lower than the cost insurance and freight (CIF) rate of the imported silver."