Gold extends fall, dips to four and half month low

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Gold extends fall, dips to four and half month low
Gold continued its loosing streak on Wednesday as chaos in Greece weighed on precious metal. The international gold dipped 1% and was seen at $ 1,532 an ounce, lowest since December 2011.

Precious-metals shine more during the times of uncertainties but one should also keep in mind their inverse relationship with US Dollar. Investors are finding dollars on the flip side, as dollar strengthening against euro and other major currencies which is having adverse affect on metals.

Investors raising concerns over the political turmoil in Greece and concerns on the fresh elections dampened the sentiment.

Gold and stock markets never tango and the present move in the same direction is surprising. At 2.40 pm IST gold for June delivery on MCX was trading lower by Rs 188 at Rs 27,938 per 10 grams after reaching intraday low of Rs 27,855 per 10 grams.

MCX Spot gold was seen lower at Rs 27,850 per 10 grams. Domestic gold price in India fell reflecting overseas trend and sluggish demand for physical gold. Gold of 99.9 and 99.5% purity rose to Rs 28,340 and Rs 28,200 per 10 grams, respectively.

Read more about: gold, mcx, futures
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