Late Afternoon Update
Mumbai: Gold resumed sharply lower by Rs205 per 10 grams to Rs11,480 on the bullion market here today on persistent selling pressure from stockists triggered by sharp fall in overseas markets.
Precious metals in Europe fell heavily on 1 April due to profit-taking and liquidation after the latest bank write-downs from UBS and Deutsche Bank triggered selling.
In New York, gold and other precious metals fell sharply Tuesday on long liquidation triggered by a stronger dollar.
June gold fell by $33.70 to $887.80 an ounce on the Comex division of the New York Mercantile Exchange.
Comex May silver lost 42 cents to $16.89.
Turning to the domestic market, Standard gold (99.5 purity) fell by Rs205 per ten grams to Rs11,480 as against the Tuesday’s closing level of Rs11,685 and pure gold (99.9 purity) also declined to Rs11,545 from Rs11,750.
However, silver ready (.999 fineness) inched up to Rs22,670 from Rs22,640 previously.
Mumbai: India’s gold futures were higher on Wednesday as overseas markets bounced back from the previous day’s two-month low, but analysts said a stronger dollar could limit gains.
“Stronger equity markets and stronger dollar could make gold trade marginally down or it may be rangebound,” said Kishore Narne, vice president - commodities at Anand Rathi Commodities.
Overseas gold rebounded with support from bargain hunters after the metal shed around 15% from its lifetime high of $1,030.80 an ounce reached on 17 March.
The benchmark June gold on the Multi Commodity Exchange of India Ltd was seen within Rs11,370 per 10 grams and Rs11,725, said an analyst at IL&FS Investsmart Commodities Ltd.
Open interest for June gold on MCX was at 5,904 lots, down from 5,962 on Tuesday. Volume on Tuesday was at 50.25 kg.