Gold loses its glitter as buyers smile

On the Multi-Commodity Exchange (MCX), Gold future contracts for October lost 1.7 per cent or Rs 134 whereas December contracts lost 1.83 per cent on Saturday. Gold was among the most traded commodity, both in value and volume on the exchange.

“It is still early to say that the booming high-price cycle for metals has come to an end, however, if the dollar continues its upward march then we might see further correction in the prices of precious metals,” said an economist of a leading commodity exchange.

However traders in silver were affected even worse as the white metal touched a 6-month low during intra-day trade today. Platinum also lost 6 per cent on its September contract on MCX. The surging dollar and fall in oil prices shattered investor confidence in these metals as a safe investment instrument.

Globally too the yellow metal saw low interest from investors as it tumbled nearly 3 per cent on Friday in Singapore, below $800 an ounce for the first time since December 2007.

Gold fell to $788.65 an ounce, its lowest since December 17, and was trading at $791.85 in Singapore on Saturday.

On the domestic front, standard gold (99.5 purity) eased by Rs 65 per ten grams to end the week at Rs 11,680 from last weekend’s close of Rs 11,745. Pure gold (99.9 purity) also softened to finish the week at Rs 11,750 from the preceding weekend’s close of Rs 11,810 per ten grams.

6.6% Fall in gold prices in the last nine trading sessions

Rs 11,680 Price of standard gold, down from last weekend’s close of Rs 11,745

Rs 11,750 Price of pure gold , down from last weekend’s close of Rs 11,810