Mumbai: Reeling under tremendous selling pressure for the third straight day, gold on Wednesday plunged to a four-year low, closing below the psychological level of Rs 25,000 in Mumbai. The plunge was mainly attributed to global spill-over effects after the recent fall in value of the precious metal.
However, the fall of gold price below the Rs 25,000-level triggered panic unwinding from bullion funds as well as speculative traders in India. Standard gold (99.5 purity) slumped by Rs300 to finish at Rs 24,820 per 10 gm from Tuesday’s closing level of Rs 25,120. Pure gold (99.9 purity) also tumbled by a similar margin to end at Rs 24,970 per 10 grams compared to Rs 25,270. According to a bullion trader, gold has lost its glimmer in India as well as the global markets, after outperforming the equity markets for more than a decade.
He, however, said that a revival in monsoon coupled with the festive and marriage season demand may revive the market sentiment. In India, the yellow metal had shot up to its lifetime high of Rs 33,790 per 10 grams in August, 2013. According to experts, deferring of buying by retailers as well as jewellers in the local market on expectations of a further fall in the gold price and shifting of funds towards the equity market, kept pressure on the yellow metal.
