Gold prices continued to dip, extending its fall for the fifth consecutive session at the bullion market here on Thursday on heavy selling from stockists and investors in line with a sharp global correction. Standard gold of 99.5% purity slid by Rs. 255 per 10 gm to close at Rs. 29,220 from Wednesday's closing of Rs. 29,475. Pure gold of 99.9% purity also dropped by a similar margin of Rs. 255 per 10 gm to close at Rs. 29,355 from Rs. 29,610.

“The yellow metal’s sharp correction due to global events would bolster local demand,” a dealer said. “The metal lost 10% of its value since it hit an historic high of Rs. 32,500 per 10 gm on November 26 last year.”

In the overseas markets, gold tumbled on a strong dollar after reports indicated that the US Federal Reserve is looking to scale down its monetary stimulus measures.

In New York, gold for April delivery dropped $26.20 to $1,578 per troy ounce on the Comex division of Nymex late on Wednesday.
India, the world’s biggest buyer of gold, may increase import taxes for a second time this year as it seeks to narrow a widening current account deficit, curbing demand.