Metal falls by Rs120; global gold price plunges to eight month low
The yellow metal fell by another Rs120 on Monday to end at Rs26, 850 per 10 grams
Chennai: Gold prices continued its fall for third day on account of reduced retail demand and bearish global cues. The yellow metal fell by another Rs120 on Monday to end at Rs26, 850 per 10 grams. However, traders pin high hopes on renewal of customer interest in gold jewellery purchases owing to this rate fall.
In the domestic market, traders attributed the dull demand for gold to the on going ‘shradh’, a period considered inauspicious by Hindus for making fresh purchases. They also attributed diversion of funds towards the rising equity markets that put pressure on prices.However, in the global market, the precious metal was trading at an eight-month low as the outlook for higher US borrowing costs strengthened the dollar, dampening demand for a store of value.
Gold slid to its weakest since early January and silver to a four-year low in early trade as speculation that the Federal Reserve will start its rate- tightening cycle sooner than expected fuelled selling of precious metals. Standard gold (99.5 purity) fell by Rs100 to close at Rs26,400 per 10 grams.
( Source : dc correspondent )
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