Gold prices fall below Rs 29,000 level in futures trade
Zee Media Bureau/Ajeet Kumar
Gold prices dipped below Rs 29,000 level by falling Rs 432 to Rs 28,871 per ten grams in futures trade Thursday as market participants offloaded their positions in tandem with a weakening trend overseas.
Appreciation in rupee against the US dollar also weighed on bullion prices.
The rupee today bounced back by 54 paise to close at an almost two-month high of 61.39 against the dollar.
At the Multi Commodity Exchange (MCX), gold for delivery in December declined by Rs 432 to Rs 28,871 per ten grams.
Similarly, silver for delivery in December moved lower by Rs 681 to Rs 48,328 per Kg.
Gold price in overseas markets, which normally set price trend on the domestic front, tumbled below USD 1,300 on signs the Federal Reserve may trim its stimulus measures this year and as the dollar rebounded after President Barack Obama began meetings with lawmakers to resolve the US budget crisis.
Safe-haven buying, seen in the last few sessions as a result of the US government shutdown, evaporated as the dollar climbed off eight-month lows, also helped by the nomination of Janet Yellen as the next Fed chief.
Spot gold last traded down 0.71 percent or USD 9.30 at USD 1,298.70 an ounce.
Meanwhile, gold prices rebounded by Rs 190 to Rs 31,000 per ten grams in Delhi bullion market on pick up in festive season demand.
On the other hand, silver dropped further by Rs 620 to Rs 49,050 per kg on lack of buying interest.