Mumbai: Gold took a severe knock to hit a 3-1/2 month low and closed below the psychologically important Rs 25,000 mark at the domestic bullion hub following heavy selling from stockist and speculative traders amids fear over an impending Fed rate hike. Elsewhere, silver also tumbled on the back speculative selling and lackluster industrial demand.
Standard gold (99.5 purity) drifted by Rs 310 to finish at Rs 24,885 per 10 grams from yesterday’s closing level of Rs 25,195. Pure gold (99.9 purity) also plunged to end at Rs 25,035 per 10 grams as compared to Rs 25,345. Silver (.999 fineness) also moved down by Rs 355 per kg to finish at Rs 34,310 from Rs 34,665 from yesterday’s closing level.
Globally, gold hit a near-six-year low, as the dollar soared after Federal Reserve Chair Janet Yellen hinted at a US rate hike later this month and investors nervously awaited the European Central Bank’s policy decision later in the day.
Spot gold fell to USD 1,045.85 an ounce, the lowest since February 2010 in earlier trade. US gold futures slid to USD 1,045.40, the lowest since October 2009, while silver fell to its lowest since August 2009 at USD 13.79 an ounce.