Gold prices fall below average rate since July 2014

MUMBAI: Gold prices fell Rs 29 to Rs 26,772 per 10 gm on MCX in early noon trade on January 9, a day after the precious metal snapped a four-day rally amid slackening demand and weak global cues.

Domestic jewellers and bullion dealers have resorted to hedging on the commodity bourse MCX to guard against inventory loss, with the price of the metal having fallen below the average rate of Rs 27,516 that had prevailed since July 2014.

'There is a fair bit of hedging on MCX, I feel, for traders to protect against inventory loss as gold has fallen in a bear market," said Ketan Shroff, spokesman of trade body Indian Bullion and Jewellers Association. Gold for February delivery on MCX had fallen from a high of Rs 28,349 on July 11, 2014 to a low of Rs 25,653 on November 6.