Gold prices fall unabated

MUMBAI, July: The free fall of gold prices continued unabated on the bullion market here on Saturday, touching the five-year low mark consequent to the slump in the international prices of the yellow metal.Standard mint gold and 22-carat gold declined by Rs 15 each to Rs 4,350 and Rs 4,020 per ten gm following the crash in the international prices caused by sale of 167 tonnes of gold reserves by Reserve Bank of Australia (RBA). Gold prices crashed to the 12-year low of $ 323 in the London market. “There were many central banks wishing they had sold and gold producers wishing they had hedged,” market sources said.

There has been a fall of nearly Rs 630 in the last three months. Thanks to abundant supplies and slack demand, gold prices have been steadily declining from Rs 4,950 per 10 gm in the first week of March 1997. Bullion industry sources say that the decline is likely to continue in the coming months.A senior official of the Bombay Bullion Association attributed the falling prices to the lack of demand in international markets following excess supply of gold. “If the prices in the international markets fall, then the prices in the Indian markets will also come down,” he said.The price levels in the international markets influence the prices in India more than the demand-supply situation.