Gold declined by Rs. 190 to Rs. 31,950
per 10 grams in the bullion market today.
Gold prices fell sharply on Monday to
drop below Rs. 32,000 per 10 grams amid profit taking after the recent steep
rise while silver too lost some of its shine. The precious metal fell for a
third successive day due to weak demand and soft global prices. Gold declined
in global markets as some investors sold the yellow metal after its rally to
the highest level in more than six months.
Gold futures dropped today as much as
1.1% before trading down 1% at US$1,759.50 an ounce as a stronger dollar took a
toll on commodities across the board. They had risen to US$1,790 an ounce on
Sept. 21 in New York, the highest since Feb. 29. In the currency markets, the euro
fell for a fifth straight day against the yen after a gauge of German business
confidence unexpectedly dropped in September.
The 17-nation currency declined to a
one-week low versus the dollar after German Chancellor Angela Merkel and French
President Francois Hollande clashed over the weekend on a timetable to
introduce joint oversight of euro-area banks. The dollar index, which measures
the US currency against a basket of six major currency rivals, jumped 0.4% to
79.67 from 79.278 late on Friday. A stronger dollar is negative for commodities
priced in the US currency, including metals as it makes them more expensive to
holders of other currencies. The yen strengthened versus all its major
counterparts amid renewed demand for safe haven assets.
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