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Gold fell over 2% in early Asian trade today after Swiss voters rejected a referendum that would have allowed the government to hold a portion of its assets in gold.
Gold fell 2.13% to trade at $1150 a oz in Singapore after closing at $1175 an oz on Friday.
Gold fell 2.13% to trade at $1150 a oz in Singapore after closing at $1175 an oz on Friday.
About 49.8% turnout was recorded, of which 24.74% of the voters favoured Swiss president Thomas Jordan's move while 75.26% rejected the move.
Swiss voters termed the plan as an “invitation to speculation.”
Under the referendum, Swiss was to buy over 1460 tonne of gold from the market, which according to experts could have provided a price cushion.
According to Ajay Kedia, managing director of Kedia Commodities, gold prices may see further correction going forward.
Silver prices also followed gold and fell by 4.24% to trade at $10.91 an oz in early Monday trade.
In rupee terms, gold prices fell to Rs 25,500 per 10 gms and silver to Rs 33,500 a kg following a similar decline. The depreciation in the rupee, however, restricted the fall marginally.
