Gold price slumps by Rs 370 to 6-week low of Rs 29,200 per ten grams

Continuing its losing falling streak for the second straight day, gold prices slumped by another Rs 370 to trade at a six-week low of Rs 29,200 per ten grams at the bullion market Wednesday in tandem with a weakening global trend amid muted demand from jewellers at spot market.

Zee Media Bureau

Gold prices weakened by another Rs 370 to trade at a six-week low of Rs 29,200 per ten grams at Delhi bullion market Wednesday in tandem with a weakening global trend amid muted demand from jewellers at spot market.

Sentiment dampened largely in tune with a weak trend overseas where gold had a fifth straight decline, the longest slump since November, on speculation that the Federal Reserve will raise interest rates as early as next month strengthened the dollar, denting demand for the metal as an alternative asset, bullion traders said.

Globally,  spot gold was down 0.5 percent at USD 1,220.81 an ounce in early trade, off an earlier low of USD 1,220.24. The US gold futures for June delivery were down USD 7.90 at USD 1,221.30.

Furthermore, fading demand from jewellers and retailers at domestic spot market fuelled the downward trend, they said.

In the national capital, gold of 99.9 and 99.5 percent purity plunged by Rs 370 each to Rs 29,200 and Rs 29,050 per ten grams, respectively, a level last seen on April 13.

At Mumbai, standard gold (99.5 purity) dropped by Rs 565 to settle at Rs 29,010 per 10 grams compared to overnight close of Rs 29,575. Pure gold (99.9 purity) also fell by a similar margin to end at Rs 29,160 per 10 grams compared to Rs 29,725 on Tuesday's closing.

Gold for delivery in June dropped Rs 140 or 0.48 percent to Rs 29,160 per 10 gram at the Multi Commodity Exchange.

With PTI Inputs