Gold price falls

GOLD surrendered its overnight gains in the domestic market on Thursday in the absence of any trigger. However, lower prices failed to propel demand for gold jewellery, as buyers were anticipating further fall in prices. A section of the market players said gold was overbought for the past few days and hence a correction was in the offing. They said further price adjustments were the pipeline. Most investors who had increased their positions in the past few days have sold a part of their holdings despite a steep fall in equity prices , they added. However, a weak rupee restricted the downside of the yellow metal, a bullion merchant said in Mumbai.
In Mumbai, pure and standard gold fell by Rs 105 and Rs 100 to close at Rs 11,705 and Rs 11,645 per 10 gm, respectively. While in Delhi the yellow metal became cheaper by Rs 150 to Rs 11,850, the metal declined by Rs 100 to Rs 12,105 per 10 gm in Kolkata. Chennai markets also saw a loss of Rs 75 as the metal settled at Rs 11,775 per 10 gm.
Meanwhile, gold prices gained more than 2% to $748.10 an ounce in European markets on Wednesday after the Bank of England slashed rates by a consensusbusting 150 basis points and the Swiss National Bank cut its rates by half a point. In London, spot gold after touching intraday high of $748 stood at $746.00/748.50, up from $739.45 in the US market on Wednesday.