Gold plunges to 1-month low, seen weaker
Gold prices fell to a one-month low today, confirming a downward journey of the yellow metal being weighed as an inflation hedge. The metal lost Rs 500 to Rs 26,800 per 10 grams as stockists sold their inventories amid weak global trends.business Updated: May 16, 2013 21:51 IST
Gold prices fell to a one-month low on Thursday, confirming a downward journey of the yellow metal being weighed as an inflation hedge. The metal lost Rs 500 to Rs 26,800 per 10 grams as stockists sold their inventories amid weak global trends.
“Global investors are investing in riskier assets and on the domestic front, this is a lean season for gold as the wedding and festive season has just ended,” said Naveen Mathur, gold analyst at Angel Broking. “Overall, we are bearish about gold and its likely to range near Rs 25,000 per 10 grams.”
Today’s fall was in continuation to a steep fall of Rs 600 on Wednesday and it slid to hit a level last seen on April 17, when the metal tumbled in overseas markets driven by reports that investors were cutting back their gold holdings. Gold in Singapore, which normally sets the price trend for the Indian market, slipped 0.4% to $1387.30 an ounce, the cheapest since April 19.
A revival in the US economy is making investors seek out equities for better returns, and gold is apparently slipping as an alternative asset class.
“Technically Gold is very weak and likely to fall further from here,” said Vijay Kedia, director, Kedia Securities.
Gold bars of 99.9 and 99.5% purity levels plunged further by Rs 500 each to Rs 26,800 and Rs 26,600 per 10 grams, respectively.
Silver, which moves in alignment with the yellow metal, dropped by Rs 1,000 to Rs 43,700 per kg and weekly-based delivery by Rs 940 to Rs 43,940 per kg.