Weighed down by heavy selling by funds and its reduced status as a safe haven, standard gold declined 1.63 per cent in Mumbai on Tuesday due to similar guidance from the international market.
In the spot Mumbai precious metals market, standard gold slumped Rs 250 to close the day at Rs 15,115 per 10 gm, while pure gold ended the day at Rs 15,185 per 10 gm.
The decline in prices is the consequence of the recovery in the global equity market, an analyst said and added, “If the trend continues, gold will see a further decline.” Gold for April delivery was down 3 per cent, at $924 in late Monday trade on the COMEX division of the New York Mercantile Exchange. Its range was between $944.60 and $920 which marked the lowest price since March 18.
On the MCX, gold contracts across months delivery fell over 2 per cent.
In early evening trade with the contract for delivery in April, declined 2.2 per cent to trade at Rs 15,085 per 10 gm. The far month contract for delivery in October also plunged 2.19 per cent to Rs 15080 per 10 gm.
