Gold downturn continues; dips below Rs 25,300 per 10 gm

At the Multi Commodity Exchange, gold for delivery in June fell further as low as Rs 25,270 per 10 gm and stood at Rs 25,577 per 10 gm, down Rs 57, the lowest level since Sept 2011.

Updated: Apr 16, 2013, 11:58 AM IST

Zee Media Bureau

New Delhi: Gold futures prices on Tuesday extended losses in early trade on sustained offloading by speculators after it dipped to over two-year low overseas.

Gold prices, which had been plummeting since last week, fell by another Rs 364, or 1.41 percent, to trade at a 19-month low ( lowest level since Sept 2011) of Rs 25,270 per 10 grams for delivery in June at the Multi Commodity Exchange. It clocked a turnover of 93 lots.

Similarly, the metal for delivery in far-month August shed Rs 266, or 1.02 percent, to Rs 25,835 per 10 gm in 93 lots.

Gold futures prices on Monday plunged by over 8 percent or Rs 2,260 to Rs 25,665 per 10 gm.

Analysts attributed persistent fall in gold prices at futures trade to speculative selling by participants after the yellow metal dropped to a two-year low on fears of central bank sales and less monetary stimulus, while holdings on global exchange-traded funds hit their lowest in more than a year.

"Meltdown in gold prices in the global market, where it dropped to a two-year low mainly weighed on the precious metal prices at futures trade here," said an analyst.

Gold prices in international markets fell to their lowest level in more than two years on Tuesday as investors dumped their holdings on fears about central bank sales and worries about global growth.

Spot gold fell as low as USD1,321.35 an ounce and stood at USD 1,341.94, down USD10.81 per ounce while silver shed nearly 2 percent to USD 22.11 per ounce.

On Monday, the price of gold bullion tumbled another USD 125 per ounce in its biggest-ever daily loss. In percentage terms, Monday's 9 percent loss would be the biggest since 1983.

With PTI Inputs