Gold slips on euro zone worries, lower physical demand

Business

oi-Sneha

By Sneha B K

Published: Tuesday, March 26, 2013, 14:21 [IST]

Gold and silver futures declined further in electronic trading on Tuesday following a similar trend witnessed internationally. Global gold prices edged lower to $1,602 an ounce. However, lingering worries over euro zone supported a further fall.

The most-active gold for April delivery on MCX was see trading at Rs 29,516 per 10 grams, lower by Rs 72 at 2.10 pm IST.

Mumbai spot gold of 99.9 and 99.5% purity was seen at Rs 29,955 and Rs 29,820 per 10 grams, respectively.

Sentiment was also affected due to sluggish physical demand for the precious metal as most people prefer tax-saving schemes at the end of the financial year.

Gold usually get benefits from economic uncertainty as it is considered as safe-haven during the economic turmoil.

If there is further deterioration in euro zone it may help gold sentiment. However, strengthening in dollar could weigh on the yellow metal as it makes commodities price more expensive.

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