Gold sheds Rs 240 to Rs 22,230 on weak spot demand

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Gold sheds Rs 240 on weak spot demand
On May 14, 2011, the prices of gold declined by Rs 240 to Rs 22,230 per 10 grams and silver fell by Rs 540 to Rs54,410 per kg as a result of the decline in the overseas trend and the fall in the spot demand.

The gold in the overseas markets fell by $11.70 to $1,495.20 an ounce whereas the decline in the demand at spot markets in spite of the ongoing marriage season also influenced the prices.

Locally, the gold of 99.9 and 99.5% purity declined by Rs 240 each to Rs 22,230 and Rs 22,120 per 10 grams, respectively while it rose by Rs 300 in yesterday's trade.

The sovereigns fell by Rs 100 to Rs 18,400 per piece of eight grams.

Moreover, the silver ready fell by Rs 540 to Rs 54,410 per kg while it had gained Rs 1,650 in last trading session.

The silver-weekly-based delivery lost Rs 440 to Rs53,810 per kg, after gaining Rs 1,950 in the previous session while the silver coins fell by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.

The total above ground stocks of gold is estimated to be around 1,63,000 tonnes by Gold Fields Minerals Services (GFMS) as on end of 2008 and out of this total stock, 51% is estimated to be present as jewellery, 18% as official reserves, 17% held as investment, 12% used for industrial purposes and 2% is unaccounted for.

Meanwhile, some of the worlds gold markets are OTC markets at London (LBMA), New York and Zurich, Gold derivative exchanges at New York - CME (COMEX), Tokyo (TOCOM) and Mumbai (MCX) while Istanbul, Dubai, Hong Kong and Singapore are doorways to important consuming regions.

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty.

Read more about: gold, commodities, inr, silver
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