Gold prices drop Rs 140 in Delhi, Rs 50 in Mumbai due to global cues on Dhanteras

New Delhi-India (Oct 17)  While gold saw some buying on auspicious occasion of Dhanteras, it fell by Rs 140 per 10 gm mainly due to profit-booking in the national capital. The weak trend overseas due to dollar strengthening against major currencies further eroded the appeal of the metal as a safe haven and also contributed to the fall in the prices. In Mumbai, the prices fell by Rs 50 for 10 gram of 22-carat gold, and by Rs 55 to Rs 31,854 per 10 gram of 24-carat gold. In Ahmedabad, spot gold was trading at Rs. 29,708 per 10 grams with a loss of 0.54 per cent at the Multi-Commodity Exchange (MCX).

In the futures market too, gold for delivery on December 5, 2017 was trading 0.48 per cent lower at Rs. 29,712 per 10 grams as of 1:33 pm. The fresh weakness in gold price overseas weighed on gold futures.

Globally, the spot gold was down 0.4 per cent at $1,289.20 an ounce, as of 0706 GMT (12:36 pm in India), while US gold futures for December delivery slipped 0.9 per cent to $1,291.70 per ounce, according to news agency Reuters.

Silver, the poor cousin of gold, also recorded a fall of Rs 400 to Rs 41,000 per kg even as retailers made token buying in coins.

Earlier in the day, Finance Minister Arun Jaitley today launched gold options trading on MCX.  According to reports, MCX will approach the regulator Sebi (Securities and Exchange Board of India) for seeking permission for trading in other commodities like cotton, crude palm oil, silver and copper.

BusinessToday