On Wednesday, gold price in India saw its second biggest loss this year of Rs. 600 to reach Rs. 27,300 per 10 grams of gold as a result of cheap off take amid weak global trend.
Traders said high selling by stock market investors on the back of slow demand at prevailing higher levels and a sharp drop in global markets, mostly pulled down gold prices. This is gold’s second biggest drop this year since April 15, when it had fell by Rs. 1,160 to reach Rs. 26,640 per 10 grams of gold in the local market.
Gold price in London, which usually puts the trend on the domestic front, fell to three-week low as the USD strengthen limited demand for an alternative investment and bullion holdings decrease. Moreover, flowing of funds from weakening bullion to increasing equity also influenced the yellow metal.
On the domestic front, the popular gold of 99.9% and 99.5% purity in India fell by Rs. 600 each to reach Rs. 27,300 and Rs. 27,100 per 10 grams, after flowing Rs. 380 each in yesterday. Nevertheless, Sovereigns held stable at Rs. 24,000 per piece of eight grams in scattered deals.