Free Press Journal

Gold suffers fresh setback on heavy unwinding, global cues


Gold down

Mumbai: Gold retreated sharply from its near one-month high at the domestic bullion market here due to renewed selling by jewellery stockists and speculators in the face of global meltdown. Elsewhere, silver tumbled to close below the key Rs 36,000 mark on the back of massive sell-off on subdued industrial demand.

In worldwide trade, the yellow metal succumbed to frantic profit-taking from investors amid fears of an imminent interest rate hike by Fed despite global slowdown worries. Federal Reserve Chairwoman Janet Yellen last week reiterated that interest rate hikes are still on track for later in the year in the midst of optimistic outlook for economic growth.

Standard gold (99.5 purity) slumped by Rs 305 to end at Rs 26,300 per 10 grams from last Saturday’s closing level of Rs 26,605. Pure gold (99.9 purity) also plummeted by a similar margin to finish at Rs 26,450 per 10 grams compared to Rs 26,755. Silver (.999 fineness) tanked by Rs 745 to conclude at Rs 35,465 per kg from Rs 36,210 last weekend. On global front, spot was substantially lower at USD 1,130 an ounce in early European trade and silver quoted at 14.64 an ounce.