Gold loses charm as stock markets surge

Surging capital markets in India are turning investors away from the bullion market to attractive stocks. This has resulted in the fall of gold prices on lack of buying supporters.

Gold prices came down on the bullion market on Tuesday as investors in the country continued to shift their funds into the rising stock markets.

Traders said buying in the yellow metal was also limited due to off-marriage and festival seasons, discounting reports that prices of the metal might go higher during the week.

A recent survey report in London revealed that gold prices might pick-up in the current week. Thirty of 37 traders, investors and analysts from Sydney to Chicago advised buying gold, which rose 1.9 per cent last week to $667.30 an ounce on the New York Mercantile Exchange.

Traders pointed out that investors shifted their funds to stock markets expecting quick returns, amid reports of decline in gold in overseas markets.

Meanwhile, trading in silver was negligible as the metal for ready delivery fell by Rs 150 at Rs 17,650 per kg and weekly-based delivery dropped by Rs 160 at Rs 17,760 per kg.

Silver coins also lost Rs 100 at Rs 23,400 for buying and Rs 23,500 for selling of 100 pieces.