The dollar rose against major counterparts ultimately sending the prices of the precious metal falling. The dollar index for June 2012 future was up 0.13 per cent to trade at 82.58 on the Inter-Continental Exchange (ICE) US dollar future index at 11.17 AM IST today. A stronger dollar reduced demand for precious metals as an alternative investment and makes dollar-priced commodities expensive.
Moreover, the weakness in the Indian rupee currency has dampened demand prospects for the precious metal and buying activity is expected to remain sluggish.
At the Commodity Exchange (COMEX), gold future for August 2012 delivery traded at US$1,550.6 per ounce, down by 0.025 per cent. It opened at US$1,555.8 against the previous closing price of US$1,551. It touched the intra-day low of US$1,546.1. (At 11.19 am IST).
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