Gold prices dip below Rs28,000 on global cues

Mumbai-India (Dec 13)  Gold prices slipped below Rs28,000 by falling Rs205 per 10 gram at the bullion market in Mumbai on Tuesday, tracking a weak trend overseas amid reduced demand from jewellers. Silver followed suit to eased by Rs50 per kg on mild offtake by industrial units.

Standard gold (99.5 purity) dropped by Rs205 to close at Rs27,830 per 10 grams from last Friday’s level of Rs28,035. The level that has not been seen since 10 February 2016. Pure gold (99.9 purity) also fell by a similar margin of Rs205 to finish at Rs27,980 per 10 grams from Rs 28,185.

Silver (.999 fineness) eased by Rs 50 per kg to conclude at Rs41,515 as against Rs41,565 last Friday. Globally, gold dipped slightly losing its lustre ahead of a key two-day meeting of the US Federal Reserve that is expected to deliver the second interest rate rise in a decade.

Spot gold slipped 0.3 % to $1,157.96 an ounce in early trade, after briefly touching a 10-month low on Monday. US gold futures were down 0.5 % at $1,160.70. Silver was up 0.4% at $17 an ounce, after rising nearly 1.4 % in the previous session.

Source: LiveMint