Gold slips below Rs 26,000 per 10 gram

Gold traded 0.7% lower at Rs 25,552 per 10 gm on the Multi Commodity Exchange of India on Tuesday, underscoring weak sentiment in the metal as the dollar strengthened because of the US economic revival.

The fall of the front-month gold contract below Rs 26,000 resulted in a marginal increase in demand for the wedding season. MCX gold tracks the price of the metal traded on overseas bourse Comex, part of the CME Group.

“Sentiment is weak primarily because of a stronger dollar,” said Sudheesh Nambiath, senior analyst at precious metals consultancy GFMS Thomson Reuters. “But the fall has raised demand a tad, better than what it was during Diwali. That’s also helped hold premiums at between $15 and $20 an ounce.”