Gold below 27,000 in global selloff

NEW DELHI: Gold prices remained under pressure, sliding below the Rs 27,000 per 10 gram level as the global selloff in commodities took its toll on the yellow metal. In a rare move, Reliance Capital decided to suspend sale of gold in physical form (including supply of gold coins for sale through India Post), and also as an investment product, across all its businesses and subsidiaries.

The company also said Reliance Capital's Commercial Finance Division has decided to suspend financing against gold as a security. Another arm of the company also decided to suspend new subscriptions in its gold savings fund. However, it made it clear that existing investors in the fund would not be affected by this decision. The move comes at a time when buyers are shunning the yellow metal as an investment option, citing high prices despite the recent slide. Expectations of sluggish returns in the coming months are also weighing heavy. Between 2002 and 2010 the annual growth in the gold market was estimated at around 40% despite prices going up at a compounded rate of around 19%.
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