Gold price plunges by Rs 176 to Rs 28,615 per 10 grams

New Delhi: Amid weak global trend and profit-booking by speculators, gold prices dropped by Rs 176 to Rs 28,615 per 10 grams in futures trade Thursday.

At Multi Commodity Exchange (MCX), gold prices for delivery in February contracts fell Rs 176, or 0.61 percent, to Rs 28,615 per 10 grams.

Analysts attributed fall in prices to weak trend overseas as the dollar strengthened, reducing appeal of the precious metal as a safe haven and profit-booking by speculators at prevailing levels.

Globally, gold prices edged down today on a strong dollar after Federal Reserve Chair Janet Yellen advocated lifting US interest rates gradually. As per experts, positive data from US put pressure on gold prices, because investors raised bets on a US interest rate hike that would increase the opportunity cost of holding non-yielding bullion.

Spot gold was down 0.1 percent at USD 1,202 per ounce, after dropping to as much as USD 1,197.31. The bullion hit an eight-week high of USD 1,218.64 on Tuesday.

US gold futures had fallen as much as over 1 percent to USD 1,197.10.

Gold, considered a safe-haven investment during times of geopolitical and financial uncertainty, has risen more than 7 percent since dropping to a more than 10-1/2-month-low in December.

With Agency Inputs