Gold hits 3-week low; physical demand slack

Gold hits 3-week low; physical demand slack


Mumbai: Gold fell on Monday afternon, hitting its lowest level in more than three weeks, following overseas trends, although a weaker rupee kept the downside in prices limited, analysts said.

Phsycial trading was lacklustre as seasonally weak demand period is underway in the world’s biggest buyer of bullion. Farmers, the traditional buyers, usually divert their savings on farm equipment and pesticides for summer-sown crops from gold and silver in monsoon period.

The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.50% lower at 22,089 per 10 grams, after hitting a low of 22,035, a level last seen on 2 June.

Overseas gold prices edged down on Monday, as a stronger dollar weighed along with caution as investors awaited a Greek parliament vote this week that is crucial to securing a sovereign debt bailout.

The rupee fell to a one-month low on Monday tailing a weak euro and lower Asian peers, before a rally in local shares and dollar sales by exporters helped pull it off the trough.