Gold falls due to overseas cues

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Gold falls due to overseas cues
On June 1, 2011, the prices of gold for the June contract declined by Rs 91, or 0.41% to Rs 22,335 per 10 grams, with a business turnover of 122 lots at the Multi Commodity Exchange (MCX) due to the decline in the global trend.

The metal for the August delivery lost Rs 90, or 0.40% to Rs 22,578 per 10 grams, with a business volume of 503 lots at the MCX.

The gold traded lower by $3.80 to $1,530.50 an ounce in Asian region.

Moreover, the traders reduced their holdings tracking the decline in the overseas trend as investor's concerns that Greece may become the first euro country to default eased which also influenced the prices.

The total above ground stocks of gold is estimated to be around 1,63,000 tonnes by Gold Fields Minerals Services (GFMS) as on end of 2008 and out of this total stock, 51% is estimated to be present as jewellery, 18% as official reserves, 17% held as investment, 12% used for industrial purposes and 2% is unaccounted.

Meanwhile, some of the worlds gold markets are OTC markets at London (LBMA), New York and Zurich, Gold derivative exchanges at New York - CME (COMEX), Tokyo (TOCOM) and Mumbai (MCX) while Istanbul, Dubai, Hong Kong and Singapore are doorways to important consuming regions.

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty.

Read more about: gold, commodities, mcx
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