Gold loses lustre; prices drop to a month's low

Updated: Wednesday, July 11, 2012, 15:20 [IST]

Gold futures fell further on the Multi Commodity Exchange (MCX), with gold futures for August 2012 contract, trading at Rs. 29,287 per 10 grams on the MCX, down by 0.48%. The metal opened at Rs. 29,400 per 10grams and touched an intra-day low of Rs. 29,234 per 10 grams.

International gold prices rose and was seen trading at US$ 1,578 a troy ounce. Recently, US dollar has spiked against major currencies of the world due to ongoing debt crisis in euro zone had weighed on gold.

Moreover, the Euro zone finance ministers failed to agree on a final figure for aid to the debt stricken banks in Spain which in turn has dampened investor confidence.

Back in India, gold of 99.9 and 99.5% purity was at Rs 29,600 and Rs 29,425 per 10 grams, respectively. Ahmadabad Spot gold on MCX was seen at Rs 29,098 per 10 grams. The physical buying in India seems steady as traders said that the buyers are still waiting for a further price correction.

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