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Gold prices hit over 4-year low, slips by Rs 40 to below Rs 25,000

Gold prices hit over 4-year low, slips by Rs 40 to below Rs 25,000

The precious metal has now lost Rs 280 in last three days. Silver prices in contrast managed to recover some ground on the back of scattered demand from consuming industries and rose by Rs 100 to Rs 33,800 per kg.

Photo: Reuters Photo: Reuters

Gold prices continued their slide for the fourth consecutive day on Thursday, dipping below Rs 25,000 by losing Rs 40 to trade at over four-year lows of Rs 24,980 per 10 grams at the domestic bullion market.

Bullion traders saw a weak trend in the yellow metal in the global market where it traded at nearly five-year lows in anticipation of a possible rate hike by the US Federal Reserve in coming months. Besides, there was an easing demand from jewellers as retailers deferred their buying plans on hopes of further dip in gold prices.

The sentiment lifted dollar, eroding demand for the precious metal as an alternative investment, and dragged down gold prices to over four-year lows in the national capital. Drying up of demand from retailers as well as jewellers on hopes of further dip in prices, too, dampened trading sentiments, they said.

The precious metal has now lost Rs 280 in last three days .

"Strengthening dollar, possible hike in rates by the US Fed and considerable fall in demand, dragged down the precious metal below the psychological Rs 25,000-mark," said Rakesh Anand, a Delhi-based bullion trader.

In contrast, silver ready managed to close higher by Rs 100 to Rs 33,800 per kg and weekly-based delivery by Rs 135 to Rs 33,565 per kg, on the back of scattered demand from consuming industries. Silver coins remained unchanged at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

Globally, gold in Singapore, which normally determines price trend on the domestic front, was trading lower at $1,085.08 an ounce, near the lowest level in five years. In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 40 each to Rs 24,980 and Rs 24,830 per 10 grams respectively, its weakest level since August 6, 2011.

 

Published on: Aug 06, 2015, 3:53 PM IST
Posted by: Agamoni Ghosh, Aug 06, 2015, 3:53 PM IST