Rally in gold fizzles out

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Rally in gold fizzles out
Gold price dropped on Thursday after rallying in two previous sessions and fell by 0.64% as hopes faded on further monetary stimulus after the Federal Reserve released its Beige Book which indicated a recovery in the US economy.

Sentiments were also dampened as the European Central Bank decided to keep rates unchanged, leaving less hopes to fight against the eurozone crises.

On the Multi Commodity Exchange, gold for August delivery was trading lower by Rs 193 at Rs 29,872 per 10 grams at 2.40 pm IST. Gold for October was seen at Rs 30,215 lower by Rs 190. Silver for July delivery on MCX was trading at Rs 55,256 per kgs lower by Rs 585.

Gold prices declined in today's trade after climbing in previous session as the spike in the precious metal tempted traders to book profits. Domestically, gold of 99.9 and 99.5% purity dropped marginally to Rs 30,200 and Rs 30,000 per 10 grams, respectively.

International spot gold stood at US $1,620 an ounce. Investors await testimony of Ben Bernanke which is due later today.


Read more about: gold, silver, mcx
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