Gold slips as investment option shifts

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Gold slips as investment option shifts
Gold slipped on Monday reversing previous session gains made after a sluggish US jobs data.

On Friday, gold surged almost 2% after US jobs data was weaker then expections that the Federal Reserve will continue its lose monetary stimulus progarmme. International spot gold slipped 0.2 per cent to $1,579.06 an ounce.

Strong greenback makes gold expensive for those holding other currencies, impacting on the precious metal as they both are inversely related.

Gold fell on reports that funds are expected to continue reducing bullion holdings and investing else where in other riskier assets like equities and real estate for better investment yields.

In India, gold futures dropped as investors reduced their positions tracking weak global cues. Gold futures for June contract was seen trading at Rs 29, 704 per 10 grams lower by Rs 63 at 1.00 pm IST.

Read more about: gold, investment
Story first published: Monday, April 8, 2013, 13:16 [IST]
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