Commodity Online
MUMBAI: As Commodity Online predicted on Tuesday gold prices witnessed a slump on Tuesday and came down crashing almost 1.17 per cent in futures trade as speculators indulged in selling, influenced by a weakening global trend.
The reason for the panic selling was the strengthening of the equity markets across the globe and fears that the yellow metal’s safe haven status is crumbling.
On Tuesday, on Multi Commodity Exchange, the gold for the most-active August-month delivery fell by 1.17 per cent to Rs 15,260 per 10 gm with trading of 27 lots.
The metal for the far-month April contract moved down by 1.13 per cent to Rs 15,251 in a business volume of 6,436 lots and June contract by 1.12 per cent to Rs 15,253 per 10 gram in trading of 940 lots.
Persistent selling by traders in tandem with a weakening global trend mainly led to the fall in gold prices.
Meanwhile, gold prices traded lower in overseas market at $942 an ounce against last close of 955 on Tuesday.
And the downward trend is set to continue today with the BSE Sensex showing good progress on Wednesday morning trade.
Around noon, Bombay Stock Exchange’s Sensex was at 9577.21, up 106.17 points or 1.12 per cent. The index touched an intra-day high of 9585.77 and low of 9430.45.
National Stock Exchange’s Nifty was at 2963.70, up 25 points or 0.85 per cent. The broader index touched a high of 2966.60 and low of 2923.30.
This is set to impact gold prices as the yellow metal is already on choppy waters following the US Fed Reserve’s decision to pump in more dollars to buy toxic debts.
This had caused fears in the market about rising inflation in the US and the gold losing its safe haven charm.
With this sentiment ruling the markets, gold prices are set to show downward trend on Wednesday also.
The weakening of gold prices may continue for the entire week.
