Monday, 24 June 2013

Gold falls by 1.31% on strong dollar, weak demand outlook

Gold prices fell by 1.31 per cent on Monday at the domestic markets as stronger greenback makes the yellow metal cheaper for those holding other currencies, thus reducing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.32 per cent higher at 82.584 on the Inter-Continental Exchange (ICE). Gold futures for August 2013 contract, at MCX, were trading at Rs. 26,666 per 10 grams, down by 1.31 per cent after opening at Rs. 27,000 against the previous closing price of Rs. 27,020. It touched the intra-day low of Rs. 26,662 till the trading. Sentiment weakened further on worries over an early end to Federal Reserve stimulus and fears of a cash crunch in China. Prices also fell on reports that Gold imports are expected to more than halve to about 150 tonnes in the coming July-September quarter against the projected 350 tonnes in the current quarter, due to sluggish demand At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,281.7 per ounce, down by 0.80 per cent. It opened at US$1,296.3 against the previous closing price of US$1,292. It touched the intra-day low of US$1,281.2.

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