Gold fell from its record level by Rs 45 to Rs 19,175 per ten grams in the national capital Wednesday on emergence of scrap jewellery selling amid weak global cues.
Marketmen said selling of scrap gold by retailers at existing higher levels and a weak trend in international markets mainly pulled down the prices.
“Some retailers taking opportunity to sell scrap jewellery at existing record levels (is) weighing on the gold prices,” said Delhi-based jeweller Rakesh Anand.
Gold rose to an all time high of Rs 19,220 per ten grams in the previous session, which was an attractive level to book profits, Mr. Anand added.
The trading sentiment turned somewhat bearish after gold prices declined in London as investors booked profits at the record high prices. In addition, a rebound in equities curbed demand for bullion.
Gold in overseas markets, which normally sets the price trend on the domestic front, declined by $ 4.25 to $ 1,232.30 dollar an ounce.
“The market is more related with the international trend these days and any improvement in the European sovereign debt crisis may ease the precious metal prices,” said All India Sarafa (Bullion) Association President Sheel Chand Jain.
Standard gold of 99.9 purity declined by Rs 45 to Rs 19,175 per ten grams, while gold of 99.5 purity was being traded lower by the same margin at Rs 19,075 per ten grams.
However, sovereigns held steady at Rs 14,700 per piece of eight grams in restricted buying.
Silver ready lacked the necessary buying support at prevailing levels and maintained the previous level of Rs 29,600 per kg, though silver weekly-based delivery rose by Rs 300 to Rs 29,305 per kg on speculative buying.
Meanwhile, the price of silver coins remained unchanged at Rs 34,500 for buying and Rs 34,600 for selling of 100 pieces.