Spot gold in the international market dropped to almost $1180 an ounce, a level not seen since August 2010. In fact, this would be the worst quarter for gold since 1968. Gold prices in India are likely to fall further in the futures and spot market today, tracking international prices. Check gold rates in India here
It now looks certain that gold would break its 12 year winning streak in 2013. In India, spot gold which had seen rates of almost Rs 32,000 per 10 grammes, has now dropped to around the Rs 24,500 level for 22k and looks set to fall further.
The sharp slump in gold is largely following comments that the US Federal Reserve may announce an end to its quantitative easing programme by the end of the year. The Fed has been unleashing large amounts of money into the US economy by way of quantitative easing, which has found its way into assets like gold and equities.
In India, the government has been keen to prevent large scale gold imports to help the current account deficit. This has ensured that global demand for the precious metal is subdued as India remains the largest gold importer.