For the third consecutive day, gold tumbled by Rs 110 to Rs 25,020 per ten grams in the bullion market today, largely due to the weakening global trend amid subdued demand from jewellers.
Globally, gold fell 0.3 per cent to USD 1,084.70 an ounce and silver 0.3 per cent to USD 14.57 an ounce in Singapore. In India, gold of 99.9 and 99.5 per cent purity dropped by Rs 110 each to Rs 25,020 and Rs 24,870 per ten grams, respectively.
Gold for the delivery in August month contracts fell down by Rs 70 or 0.28 percent, to Rs 24,605 per 10 gram at the Multi Commodity Exchange, in a business turnover of 13 lots. The metal for delivery in the far-month of October has shed Rs 28 or 0.11 per cent, to Rs 24,755 per 10 gram in 424 lots.
Traders states that the gold fell amid a weak global trend after a voting member of the US Fed has said that the central bank is close to raising interest rates, lifting the dollar to a four-month high which diminished the appeal of the precious metal.
People are now in the mood to wait and see for any kind of investment in the precious metal. India is one of the largest importer and marketer of gold has become volatile due to the down trend. The market has come to a standstill when the volume of business is considered. The liquidity of gold has also started to tremble.