Gold, silver declines; Fitch warning weighs

Business

oi-Monika

By Monika Nihalani

Published: Monday, December 19, 2011, 12:40 [IST]

Gold and silver futures declined further in electronic trading on Monday following the similar global trend. The metals declined globally on the negative cues after Fitch Ratings, the global rating agency on Friday warned that it may downgrade France and six other euro zone nations soon as it doubt on European economies' swift recovery.

Fitch also revised the outlook of France to negative. And, it could revise the ratings of Belgium, Ireland, Spain, Cyprus, Italy and Slovenia soon.

The news dragged euro down against the basket of currencies. US dollar again took the lead.
Stock markets acted in tandem over the news, with most of the major stock exchanges seen in red.

Gold and silver also felt the jolt, with the overseas gold dragged down in the range of US $1,588 - $1,591 a troy ounce.

Back in India, gold on MCX fell more than Rs 100 with the February gold futures opened at Rs 27,612 per 10 grams, touched a low of Rs 27,500. At 12:30 pm IST, the metal was seen trading in the range of Rs 27,546 – Rs 27,551 per 10 grams.

Silver for March delivery opened low at Rs 53,400 per kg and slid further. It was seen trading at Rs 52,700 – Rs 52,717 per kg same time.

Of late, precious-metals have lost their safe-haven title and have been witnessing a similar trend to other riskier assets due to volatility in currency markets.

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