As stock markets on Wednesday cheered, the gold prices saw a decline taking cues from global developments.
The 30 stock limited index of the Bombay Stock Exchange Sensex was up by 202 points or 1.2% on positive cues from international capital markets.
Sensex rose second time during the week crossing the 17,000 mark to touch 17,065 points on Wednesday. Realty stock gained 3.4% followed by power, consumer goods and banks that increased by 2.4%, 2.1% and 2.1% respectively.
While the broader Nifty of the National Stock Exchange too gained 60 points to close at 5,124.7 or 1.2% up.
The Indian stock market took cues from the European mar kets that were in the black on Wednesday.
As the stock markets gained momentum, the gold futures lost about 1.8% of its value as investors moved away from the yellow metal. The price of gold for October future contract was R27,463 per 10 grams on the Multi Commodity Exchange (MCX).
Analysts predict that if the situation in Europe and US improve, gold could dip as low as R24,000 per 10 grams. Otherwise, the yellow metal could rise up to R30,000 per 10 grams within next two months.