Gold price extends downward journey; dips below Rs 25,500
Zee Media Bureau
New Delhi: Gold futures prices on Thursday extended their fall by Rs 250 to trade at Rs 25,430 per 10 grams on increased offloading of positions by participants taking cues from the global market.
At the Multi Commodity Exchange (MCX), gold for delivery in June fell by Rs 249 to Rs 25,430 per 10 grams.
Likewise, the metal for delivery in far-month August shed Rs 221, or 0.85 percent, to Rs 25,886 per 10 gm in 115 lots.
Similarly, silver for delivery in May slipped by Rs 480 to Rs 43,151 per kg.
Besides a subdued demand in the spot market, where the precious metal dipped to a 20-month, low also weighed on the prices.
In the spot markets, gold prices dropped to Rs 26,150 per 10 grams, its lowest level since August 17, 2011 in the national capital. Prices have dropped by Rs 3,250 in the last four days.
Analysts said a weak trend in the overseas markets on speculation central banks in Europe may sell holdings to raise funds and that a US recovery would curb demand for the metal as a protection of wealth, mainly weighed on the gold prices at futures trade here.
Globally, spot gold ( In Asian trade) dropped over1 percent today as losses in other markets forced investors to sell bullion to raise cash, undermining its usual status as a so-called safe-haven asset.
Holdings of the world's largest exchange-traded fund dropped to their lowest level in three years, as festering worries over global growth continued to sap broad investor confidence.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.97 percent to 1134.79 tonnes on Wednesday, the lowest since April 2010.
With Agency Inputs