Gold prices dropped by up to Rs 100 per 10 grams at domestic bullion markets following lower demand from stockists and investors driven by weakness in international markets.
Zee Media Bureau
New Delhi: Gold prices dropped by up to Rs 100 per 10 grams at domestic bullion markets following lower demand from stockists and investors driven by weakness in international markets.
Besides the weak trend overseas, easing demand from jewellers and customers at the domestic spot market kept pressure on the prices of the precious metals.
Globally, gold eased as investors turned cautious after the metal failed to sustain a recent rally, though it held near the previous day's two-week high after the Federal Reserve further dampened speculation about an imminent US rate rise.
Spot gold was down 0.3 percent at USD 1,240.71 an ounce in early trade, while US gold futures for June delivery were down USD 3.90 an ounce at USD 1,243.50. It hit its highest since May 24 on Monday at USD 1,248.40.
The rupee strengthening by 25 paise against the dollar to 66.72 (intra-day), thus making imports of precious metals cheaper, dampened sentiment to some extent.
In the national capital, gold of 99.9 percent and 99.5 percent purity declined Rs 10 each to Rs 29,030 and Rs 28,880 per 10 grams, respectively. The precious metal had lost Rs 185 yesterday.
At Mumbai, standard gold (99.5 purity) declined by Rs 80 to end at Rs 29,035 per 10 grams from Monday's closing level of Rs 29,115. Pure gold (99.9 purity) also fell by a similar margin to conclude at Rs 29,185 per 10 grams as compared to Rs 29,265 previously.
With PTI Inputs