Gold tanks below 26,000-level; hits 19-month low
Zee Media Bureau
New Delhi: Gold futures prices on Monday plunged by over 8 percent to Rs 25,665 per 10 gm, a level last seen in Sept 2011 on sustained offloading by speculators after it dipped to over two-year low overseas.
At the Multi Commodity Exchange, gold for delivery in June fell sharply by Rs 2,260, or 8.09 percent, to Rs 25,665 per 10 gm, the lowest level since Sept 2011.
At the Delhi bullion market, gold prices fell by Rs 750 to close at over 15-month low of Rs 27,600 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 a Delhi-based analyst Shree Bhagwan Garg.
A weakening trend on the domestic spot markets as a falling rupee hit buying activity also weighed on the bullion prices, they said.
With PTI Inputs