Gold slides, dollar and euro zone worries weighs

Business

oi-Staff

By Super

Published: Tuesday, June 19, 2012, 14:15 [IST]

Gold on MCX slid on Wednesday as the dollar spiked against the basket of currencies. The shares of the Indian companies also fell following a weakening trend in Asian and European markets.

The gold futures for December delivery contract on MCX opened high at Rs 29,147 per 10 grams, declined to Rs 29,016 during the first session of the trade, seen trading at Rs 29,070 per 10 grams at 2:15 pm IST.

While the futures for February contract also fell after opening high at Rs 29,410 per 10 grams. They were seen trading in the range of Rs 29,375 – Rs 29,382 per 10 grams same time.

Overseas gold prices rose to US$ 1,773 an ounce.

On domestic front, the prices stood steady at Rs 29,260 per 10 grams for 24 carat gold and Rs 27,380 per 10 grams for 22 carat gold.

On the currency side, US dollar has again taken a lead due to rising worries over the euro zone. A stronger dollar might cap the upside movement of gold in short run.

Euro fell against the US dollar on fears that the contagion of Greece's and Italy's debt crisis could spread to France, region's second largest economy.

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