Gold loses Rs 200 as stockists book profit
Despite a softer dollar, gold lost heavily on Friday on profit-taking at the local bullion markets, pushing prices further down from the psychological Rs 10,000 per 10 gm mark.
By TNN |
MUMBAI: Despite a softer dollar, gold lost heavily on Friday on profit-taking at the local bullion markets, pushing prices further down from the psychological Rs 10,000 per 10 gm mark.
However, the yellow metal regained ground in European trade on Friday as the metal’s overnight drop of nearly 2% attracted investors and physical buyers as the dollar slipped against the euro and yen.
Gold had been under pressure from sustained selling as investors took profits, but the softer dollar and West Asian crisis lifted the metal. Back home, after a long gap, physical buyers showed some interest in yellow metal on Friday as prices fell over 2% and traders were active ahead of the new buying season beginning August, sources in the market said. Silver also suffered in line with gold supported lacklustre response from industrial users.
Among four metros, Kolkata suffered the most, where standard gold (99.5) plummeted by a whopping Rs 210 to close at Rs 9,715 on stockists’ selling. In Mumbai, the metal erased most of its overnight gains and closed Rs 195 at Rs 9,550. In Delhi, the metal traded Rs 150 lower at Rs 9,650, while in Chennai the metal was down by Rs 130 at Rs 9,670 per 10 gm.
In London, gold for immediate delivery fell as low as $620.3 an ounce in Asia on profit-taking, but recovered to $634.2/634,9 an ounce by afternoon. It closed at $632.00/633.00 in New York late on Thursday, when it fell about 1.5% percent. A weak dollar makes gold cheaper for holders of other currencies and often lifts demand for the metal.
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Gold would remain at $615-$665 range in the next few weeks, with heavy technical selling expected to emerge if the metal breached key levels, agency report said quoting analysts as saying. In silver (.999) Delhi was hit the most on fresh bout of selling pressure amidst fresh arrivals. The metal plunged by Rs 250 at Rs 17,300, followed by Mumbai where it lost Rs 110 at Rs 17,655. In Kolkata, the white metal drifted to Rs 17,300 from Rs 17,400 and in Chennai it dropped Rs 90 at Rs 17,540 per kg.
In London, silver took a cue from gold and rose to $11.15/11.25 an ounce from $10.98/11.08 in New York on Thursday.
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