Friday, September 15 2006 17:09 Hrs (IST) - World Time -

New Delhi: A weakening overseas trend pulled down gold prices to a three-month-low level on the bullion market today (Sept 15, 2006), on stockists selling in the absence of festival buying.

Gold was down by Rs 190 at Rs 8,830 per ten gram, a level last seen on June 16, on heavy selling by stockists triggered by weak overseas trend.

Gold traded lower in other Asian markets after jewelers, the largest users of the metal, deferred purchases as analysts predicted that prices may fall further.

In international markets, which normally set price band in domestic markets here, the precious metal fell by 2.40 dollars to 572.85 dollars an ounce.

The demand for gold used in making jewellery is likely to decline by 19 per cent this year to 2,205 tonnes, metals researcher GFMS said. Jewellery demand in the first half this year was 1,069 tonnes, down 28 per cent from 1,481 tonnes a year ago, it said.

The metal also fell as crude oil traded below 64 a barrel for the fourth day, lowering the precious metal's appeal as a hedge against inflation.

In domestic market here, standard gold and ornaments fell by Rs 190 each at Rs 8,830 and Rs 8,680 per ten gram respectively. Sovereign also fell by Rs 50 at Rs 7,500 per piece of eight gram.

Silver followed suit and fell by Rs 625 at Rs 17,200 per kilo and weekly-based delivery by Rs 310 at Rs 17,590 per kilo. Silver coins also fell by Rs 100 at Rs 21,100 for buying and Rs 21,200 for selling of 100 pieces.