India gold rate witnessed a free fall tracking international gold prices on the back of strength in the US dollar. Positive US economic data also dampened investor sentiment in the international bullion markets.
In India, gold futures for December delivery was seen trading lower by Rs 206 or 0.80 per cent at Rs 25,616 on the Multi Commodity Exchange(MCX).
The drop in the price is attracting gold lovers to accumulate more of it, while few are expecting the rate to drop further.
The outlook for gold is not positive as of now due to dollar strengthening against basket of currencies. Strong economic growth across the globe means investors would continue to chase equities over gold. Spot gold in India was seen at Rs 25,824 per 10 grams.
International spot gold was at $1,152.32 an ounce. The Positive trend seen in the US economy could prompt US Federal Reserve to raise interest rates, hurting gold sentiments even further.
Recent downtrend seen in gold prices have tarnished its reputation as a safe haven, and bullion has moved in tandem with riskier assets. However, one looking for investment in gold can look to invest with a long term perspective in mind. Check gold rates here