Gold bearish trend may continue in 2016 after falling 6.51% in 2015

The yellow metal has lost value for three straight years. It fell 6.51 percent in 2015 alone.

PTI| Updated: Jan 02, 2016, 23:16 PM IST
Gold bearish trend may continue in 2016 after falling 6.51% in 2015

Mumbai: Bearish outlook continued to take centre stage in 2016 as both the precious metals - gold and silver remained

largely eclipsed in the minds of potential investors amid confusion and uncertainty in the near term.

After a short pullback, the yellow-metal once again succumbed to fresh bout of profit-taking from jewellery stockists and speculators during the week.

Lack of definite cues from overseas markets in view of holidays worldwide predominantly influenced trading sentiment even as local buyers preferred to stay on the sidelines.

It mostly traded in a tight range through out the sessions before slipping back below the psychologically significant Rs 25,000 mark briefly on Thursday.

However, good low level buying support in view of festival and wedding related demand, largely insulated from any major slide.

The precious metal has lost value for three straight years. It fell 6.51 percent this year alone.

Elsewhere, silver also retreated on the back of frantic speculative unwinding and closed below the Rs 34,000 level.

In worldwide trade, the shiny metal lost ground to end lower in a holiday-shortened trade after a brutal 2015 mark by broader commodity meltdown sparked by worries about the growth slowdown in China.

In New York Comex trade, gold for February contract dropped to end at USD 1,060.20 an ounce from last Friday's level of USD 1,075.90 and March silver delivery also eased to settle at 13.80 an ounce from USD 14.379 previously.

On the domestic front, standard gold (99.5 purity) resumed a tad higher at Rs 25,205 per 10 grams against last Wednesday's close of Rs 25,195 and swung between Rs 25,275 and Rs 24,980, before finishing at Rs 25,015, registering a modest loss of Rs 180 per 10 grams, or 0.71 percent.

Similarly, pure gold (99.9 purity) also opened firm at Rs 25,355 per 10 grams from last close of Rs 25,345 and moved between Rs 25,425 and Rs 25,130, before ending at Rs 25,165, revealing a fall of Rs 180 per 10 grams, or 0.71 percent.

Silver ready (.999 fineness) commenced lower at Rs 34,335 per kilo against previous closing of Rs 34,460 and plunged further Rs 33,565, before concluding at Rs 33,610, showing a steep drop of Rs 850 per kg, or 2.47 percent.