Global cues force gold to dip below `19,000-level

Mumbai, Sept. 10: Gold prices declined further to close below the `19,000-mark at the bullion market here on Friday due to sustained sell-off by stockists and speculators in view of weak global cues.

Silver, after trading in a narrow range, settled at its overnight levels owing to reduced off-take at higher levels.

Standard gold (99.5 purity) dropped by `140 per ten grams to finish at `18,935 from Thursday’s closing level of `19,075.

Pure gold (99.9 purity) fell by `120 per ten grams to end at `19,050, as against `19,170 on Wednesday.

However, silver ready (.999 fineness) closed unaltered at `32,155 per kilo.

In New York, Gold futures for December delivery slipped on Thursday by $6.60 to $1,250.90 an ounce on the COMEX division of NYMEX. Silver for December delivery lost 15 cents to $19.855 an ounce.

The International Monetary Fund (IMF) said on Thursday that it sold 10 tonnes of gold to the central bank of Bangladesh this week, its first sale after a 10-month hiatus, as a volatile US currency draws holders to bullion.

The gold market is sensitive to buying by Asian central banks. Purchases by India, Mauritius and Sri Lanka helped boost prices earlier this year, while speculation China was in the market for IMF gold in February, ultimately unfounded, sent prices higher by one per cent.

Asian stocks hit a four-month high on Friday on the back of positive global cues.

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