Gold futures dips below Rs 26,000 level; loses over Rs 700

Worldwide slide in gold rates,witnessed correction in its prices as rally was overdone: Analyst

Gold prices dropped by Rs 709,or 2.70 per cent,to fell below Rs 26,000 level after the precious metal slumped in global m arkets as rising equities trimmed its demand. At the Multi Commodity Exchange (MCX),gold for deliver in October dropped further by Rs 709,or 2.70 per cent,to Rs 25,584 per 10 grams,with a trade volume of 57,777 lots. Similarly,the precious metal for delivery in December lost Rs 710,or 2.67 per cent,to Rs 25,833 per 10 grams,with a business turnover of 3,009 lots. On the domestic front,gold prices dipped below Rs 26,000 level by losing Rs 1,820 to Rs 25,980 per 10 grams in Chennai.

“The worldwide slide in the gold rates,which glittered to record highs in the past several sessions,witnessed correction in its prices as rally was overdone,” an analyst said.

“Gold may further shed its sheen in the coming days,” he added.

Traders said the fall in gold futures prices was in tandem with a weakening trend overseas,where the metal fell for the third day,as rising equities helped curb demand for a safe haven and as CME Group raised futures margins. Meanwhile,gold declined by $30.35,or 1.7 per cent,to $1,728.97 an ounce in London. The metal had touched a record high of $1,913.50 an ounce on August 23.