MUMBAI, July 7: Gold prices, which are already below the five-year low, fell further in the bullion market here on Monday.

With the gold prices tumbling further in the overseas markets, the standard mint gold and 22-carat eased by Rs 15 and Rs 10 to Rs 4335 and Rs 4010 per ten gm respectively.

Prices of ten tola gold bar also went down by Rs 200 to Rs 50,700 due to poor buying interest from jewellery industry and investors.

Dealers said gold prices, moving in the shadow of depressed world markets, are expected to fall further in India.

A plunge in world gold prices to below $ 325 per ounce on Friday, their lowest in 12 years, triggered selling among traders in both India and Pakistan, dealers said.

The crash in world prices followed news that Australia's central bank had sold bullion from its reserves. In Dubai, the feeder market for Indian demand for gold, jewellery and bullion sales improved, dealers said, adding that the main re-export trade remained sluggish.

An official with the Bombay Bullion Association said the country's liberal import policy linked local bullion trade to world markets. "Indian prices mirror the world trend at any given point of time," he said.

"The market sentiment is bearish and looking at the week's world prices as well as sluggish physical demand, I am expecting gold prices to fall further in the coming days," he said, adding, "In India, the wedding season is over and whatever money is left is now being shifted from gold to the booming stock markets.

"In the meantime, it is learnt that lower prices have attracted people back into the market, anticipating that the upturn in demand would prompt higher imports.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.