Gold price plunges to 6-month low, dips below Rs 29,000 per 10 grams
07/12/2016
New Delhi: Tracking negative cues from the international market, gold prices on Tuesday dipped below the Rs 29,000 mark by falling Rs 250 to an over six-month low of Rs 28,800 per 10 grams.
Today's slump is the second straight session fall in gold prices.
Globally, gold fell to its lowest in 10 months yesterday as global equities strengthened as investors shrugged off worries of political instability in Italy, while US Treasury yields rose after US economic data.
Spot gold fell by as much as 1.6 percent to its lowest since February at USD 1,157 an ounce.
Higher appetite for risk curbs the appeal of assets viewed as safer, such as gold.
Gold fell more than 8 percent in November, hurt by a jump in the dollar and Treasury yields after Donald Trump`s surprise election to the US presidency led to speculation that his commitment to infrastructure spending would spur growth and inflation.
Moreover, reduced offtake by jewellers owing to a considerable fall in demand at the domestic spot market in view of the prevailing cash crunch following demonetisation of high-value notes hurt sentiment.
The government on November 8 had scrapped 500 and Rs 1,000 rupee notes to flush out black money, leading to a cash crunch in the market.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged Rs 250 each to Rs 28,800 and Rs 28,650 per 10 grams, respectively -- a level last seen on May 31 when it had closed at Rs 28,850. The precious metal had lost Rs 200 in yesterday's trade.
Following gold, silver ready declined by Rs 100 to Rs 41,100 per kg, but weekly-based one jumped by Rs 835 to Rs 41,200 on speculative activity.
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