India - Gold fall further as funds continue shifting to equities

NEW DELHI: Gold continued to surrender ground on the bullion market today on lack of buying support as investors continued to shift their funds into the surging stock markets, fearing a rise in the metal's value in the previous few trading sessions was overdone. Gold, which was bullish since the beginning of this month, fell by Rs 30 in today's trading in continuation to previous day's fall of Rs 10 as increased activity on the Bombay Stock Exchange's Sensex reduced the demand for the metal. Standard gold and ornaments were down by Rs 30 each at Rs 8,850 and Rs 8,700 per ten gram respectively. Sovereign remained unchanged at Rs 7,625 per piece of eight gram. Buying in the metal was also limited due to off-marriage and festival seasons, discounting reports that prices of the metal might go higher during the week. A recent survey report in London revealed that gold prices might pick-up in the current week. Thirty of 37 traders, investors and analysts from Sydney to Chicago advised buying gold, which rose 1.9 per cent last week to $ 667.30 an ounce on the New York Mercantile Exchange. Market players said investors shifted their funds to stock markets expecting quick returns, amid reports of decline in gold in overseas markets, which normally set prices here. Trading in silver was negligible as the metal for ready delivery fell by Rs 150 at Rs 17,650 per kilo and weekly-based delivery dropped by Rs 160 at Rs 17,760 per kilo. Silver coins also lost Rs 100 at Rs 23,400 for buying and Rs 23,500 for selling of 100 pieces.