MUMBAI (Thomson Financial) - Indian spot gold closed weaker by 1.2 pct led
by global weakness and as domestic investors booked profit, market participants
said.
In London, gold declined to its three week-low at 849.30 usd an ounce as a
global stock markets plunge forced funds to liquidate profitable commodity
positions to cover margin calls.
Many domestic investors liquidated their holdings in gold to cover for
losses made in the equity markets, said Prithviraj Kothari, director at Riddhi
Siddhi Bullion Ltd, a Mumbai-based trading house.
The Bombay Stock Exchange's 30-share Sensex closed 5 pct lower at 16,729.94,
after tumbling more than 11 pct to 15,332.42 points within minutes of opening,
which led to a brief halt in trading.
On Indian gold imports, Standard Bank's Johannesburg-based analyst Walter De
Wet said: "We can reasonably expect a slide down in gold imports from India in
2008 and that would pressure the international spot gold prices.
"Indian consumers have been resisting higher gold prices and would buy only
if prices stabilise at around 850 usd levels," De Wet said in a telephone
interview.
Mumbai gold of .995 and .999 purity closed 135 rupees lower to close at
11,055 per 10 grams and 11,105 per 10 grams, respectively.
Silver of .999 purity closed lower by 320 rupees at 20,150 a kg.
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