Gold falls by Rs 500 in line with fall in crude prices

Business

oi-Monika

By Monika Nihalani

Published: Friday, November 18, 2011, 11:30 [IST]

Gold and Crude oil generally share a positive correlation and they move in similar direction. Gold registered a biggest-one day fall in two months on Thursday, following a same trend on Friday.

Overseas spot gold slipped 2.5% to US$ 1,719.74 an ounce, a level not seen in three-weeks.

On the other side, Brent North Sea Crude for January delivery fell to $107.71 on rising concerns that Spain would be the next in line to fall in euro zone debt crisis, the news turned investors bearish about the commodities.

Gold accompanied its fellow crude and displayed a falling trend on the major commodity bourses.

Gold for December delivery on the Multi Commodity Exchange (MCX), opened low at Rs 28,450 per 10 grams, seen trading at Rs 28,460 – Rs 28,463 per 10 grams at 11:00 am IST.

The metal for February contract also fell after opening at Rs 28,850 per 10 grams, it touched a low of Rs 28,751 per 10 grams in an early session of the trade.

Silver also followed the footsteps of gold, the most-active Silver futures for December delivery contract opened at Rs 54,111 per kg and fell to Rs 53,755 per kg in the initial part of the trade.

Indian investors liquidated their positions from commodities seeing a weak trend in global markets.

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