Gold prices retreat from record levels,falls below Rs 32,000

Snapping a three-day rally where prices rose by Rs 690 per ten gram,gold today in New Delhi fell from record Rs 32,300-level to settle at Rs 31,910 per ten gram.

The precious metal prices fell by Rs 355 to Rs 31,495 in Mumbai. In other major metros,gold prices dropped by Rs 370 to Rs 31,805 while the rates eased by Rs 345 to Rs 31,615 in Chennai.

“Domestic prices fell tracking global market,where profit booking led to a temporary correction in prices. Investors had taken position in gold on hopes that the US and Europe will infuse liquidity into the market.

“After the announcement from the European Central Bank that it would allow unlimited bond-buying plan,they started liquidating their position and this led to a fall in prices,” JRG Wealth Management,Commodities Research Head,Harish Galipalli said.

He,however,said long-term investors are holding on to their positions as global price outlook is bullish.

Traders also said that sentiment turned weak after gold tumbled overseas where some investors sold the metal following its rally to the highest level in almost six months.

In the global market,gold prices yesterday had gained one per cent to USD 1,709.90 an ounce in London. Today,the metal fell by 0.3 per cent to USD 1,695.47. Silver shed 1.1 per cent to USD 32.27 an ounce.

On the domestic front,the gold of 99.99 and 99.5 per cent purity dipped by Rs 390 each to Rs 31,910 and Rs 31,710 per 10 grams,respectively. Silver (ready) dropped by Rs 1,400 to Rs 59,700 per kg and weekly-based delivery by Rs 1,575 to Rs 61,770 per kg.

Silver coins tumbled by Rs 4,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces. Sovereign fell by Rs 150 to Rs 25,100 per piece of 8grams.