Zee Media Bureau
New Delhi: Gold price on Thursday fell to its six-month low of Rs 29,000 per 10 grams in Delhi bullion market amid weakening global trend and considerable fall in demand from jewellers at the domestic spot market.
At the Multi Commodity Exchange (MCX), gold for delivery February traded lower by Rs 83, or 0.29 percent to Rs 28,114 per ten grams.
Analysts attributed the fall in gold futures to offloading of positions by traders in-line with a weak trend overseas as the dollar's surge to the highest in at least a decade and signs that the US Fed is moving closer to increasing rates, eroded the metal's appeal as a safe-haven asset.
Globally, gold fell 1.25 percent to USD 1,173 an ounce in New York yesterday
A falling demand from jewellers and retailers in the domestic bullion market due to paucity of funds too weighed on sentiments, traders said.
The government on November 8 had scrapped 500 and Rs 1,000 rupee notes to crack down on black money, leading to a cash crunch.
In the national capital, gold of 99.9 percent and 99.5 percent purity slumped by Rs 350 each to Rs 29,000 and Rs 28,850 per 10 grams, respectively -- a level last seen on June 1. The precious metal had lost Rs 100 in yesterday's trade.
Tracking gold, silver ready dropped by Rs 735 to Rs 40,700 per kg.