Gold futures fall further by Rs 1,000

Published: Monday, September 26, 2011, 11:15 [IST]

After falling on a free fall ride on Friday, gold futures fell further in morning trade. Globally, investors are scrapping their gold holdings over a view that gold is no more safe-haven asset.

Meanwhile, gold for delivery in October at the Multi Commodity Exchange, opened at Rs 26,700 per 10 grams, declined further and was trading in the range of Rs 25,713 – Rs 25,720 per 10 grams at 11:05 am IST. It made intraday lows of Rs 25,653 per 10 grams

And, the metal for April contract delivery opened at Rs 26,818 per 10 grams and was trading in the range of Rs 26,597 – Rs 26,634 per 10 grams.

On the domestic front, 24 carat gold price fell to Rs 26,600 per 10 grams and that 22 carat gold declined to Rs 24,380 per 10 grams.

Investors are closely watching Euro zone, as European leaders are working on to prevent on-going debt crisis. So, investors are dumping gold futures on speculation that leaders may come up with some rescue plan to prevent its economy from worsening.

On the other side, dollar continues to head against all major currencies, which is also another setback for the price of gold as it is turning expensive for rest of the nations to buy gold.

Market analysts say gold may dip more this week as negative sentiments continues among the global investors about the metal outlook.

(Find out the reasons, why gold registered a steep fall)