Gold melts with $ in driver's seat
Gold’s bull run came to an end abruptly on Tuesday when the metal lost more than 2% across the board on panic selling.
By TNN |
MUMBAI: Gold’s bull run came to an end abruptly on Tuesday when the metal lost more than 2% across the board on panic selling, after a steep fall in global prices. Gold, in fact, came under pressure for a fifth time in the last seven sessions in domestic market as stockists took profits in the wake of volatile nature of trading.
A smart recovery in dollar and lower oil prices also added further fuel to selling pressure. Meantime, the dollar gained strength on expectations that the Federal Reserve might raise interest rates at its next meeting. “It’s a U-turn of the market.
On Monday, gold took driver’s seat as the dollar eased and oil breached $73 on Iran tension,” a bullion dealer said. And on Tuesday, he said, gold lost sheen as the dollar and oil have changed direction.
In domestic market, Kolkata lost the most, where standard variety (99.5) dropped Rs 135 at Rs 9,625 followed by Mumbai, where the metal recorded a fresh loss of Rs 120 at Rs 9,460 per 10 gm. Pure variety (99.9) also melted by Rs 110 to Rs 9,515. In Chennai, the metal was down by Rs 100 to close at Rs 9,590 on sustained selling from stockists.
In Delhi, it erased previous day’s gains on aggressive selling and closed lower by Rs 90 at Rs 9,570 per 10 gm. In London, spot gold prices also fell over 2% to $628/628.70 an ounce on Tuesday as the dollar rose to session highs after anti-inflationary comments from St Louis Federal Reserve president William Poole were reported by a financial newspaper.
Gold had closed New York trading at $643/644 on Monday. In Hong Kong, the metal plunged to $633.0/634.0 an ounce from the last close of $643.0/644.0. Domestic silver also lost heavily on aggressive selling and in the process, Delhi suffered the most, where ready silver(.999) crashed by Rs 900 to end at Rs 18,300 per kg.
In Chennai, it fell sharply by Rs 515 to Rs 18,615 on similar reason. In Mumbai, the metal softened by Rs 385 at Rs 18,200 whereas it lost Rs 150 in Kolkata to close at Rs 17,650 per kg. In London, spot silver see-sawed either side of the $12.0 level, indicated recently at $11.96/12.06, down from $12.32/12.42.
A smart recovery in dollar and lower oil prices also added further fuel to selling pressure. Meantime, the dollar gained strength on expectations that the Federal Reserve might raise interest rates at its next meeting. “It’s a U-turn of the market.
On Monday, gold took driver’s seat as the dollar eased and oil breached $73 on Iran tension,” a bullion dealer said. And on Tuesday, he said, gold lost sheen as the dollar and oil have changed direction.
In domestic market, Kolkata lost the most, where standard variety (99.5) dropped Rs 135 at Rs 9,625 followed by Mumbai, where the metal recorded a fresh loss of Rs 120 at Rs 9,460 per 10 gm. Pure variety (99.9) also melted by Rs 110 to Rs 9,515. In Chennai, the metal was down by Rs 100 to close at Rs 9,590 on sustained selling from stockists.
In Delhi, it erased previous day’s gains on aggressive selling and closed lower by Rs 90 at Rs 9,570 per 10 gm. In London, spot gold prices also fell over 2% to $628/628.70 an ounce on Tuesday as the dollar rose to session highs after anti-inflationary comments from St Louis Federal Reserve president William Poole were reported by a financial newspaper.
Gold had closed New York trading at $643/644 on Monday. In Hong Kong, the metal plunged to $633.0/634.0 an ounce from the last close of $643.0/644.0. Domestic silver also lost heavily on aggressive selling and in the process, Delhi suffered the most, where ready silver(.999) crashed by Rs 900 to end at Rs 18,300 per kg.
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In Chennai, it fell sharply by Rs 515 to Rs 18,615 on similar reason. In Mumbai, the metal softened by Rs 385 at Rs 18,200 whereas it lost Rs 150 in Kolkata to close at Rs 17,650 per kg. In London, spot silver see-sawed either side of the $12.0 level, indicated recently at $11.96/12.06, down from $12.32/12.42.
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