Gold prices take an eight-month dip

New York (July 17)  Gold prices took a dip to US$ 1140 yesterday, an eight-month low and at levels seen in November 2014, reports say. The dip was influenced by the announcement of US Federal Reserve Chair Janet Yellen confirming to the US House of Representatives Financial Services Committee about the likelihood of US interest rates increasing this year, reports add.

In India, the prices dropped to around Rs 26,000 in some markets marking the lowest since the past four months. Also, demand for gold or gold jewellery did not indicate any increase, reports add. The lowered monsoons have dampened gold and gold jewellery demand especially in the rural areas, as per reports. Gold imports in June 2015 dipped 37 percent to US$ 1.96 billion below the comparative figure for last year, reports say.

The US rate hike would be the first increase in the Fed rate since 2006, and with the dollar expected to strengthen, dampening demand for gold. The reduced uncertainty has also impacted gold prices and demand.

Source: DiamondWorld