Gold slides by Rs 255 for fifth day in a row

  • PTI, Mumbai
  • |
  • Updated: Feb 22, 2013 01:09 IST

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.

 

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