Gold prices in international markets dipped half a per cent this week to end at 4,063 dollars per ounce amid signs of some ease in global trade order, fading hopes of a December rate cut by the US Federal Reserve and a stronger dollar index.
In domestic markets, Gold futures on the Multi-Commodity Exchange (MCX) for the December contract settled at 1,24,191 rupees per 10 grams while Silver for the December contract closed at 1,54,151 rupees per kilogram.
In the local bullion market, gold of 99.5 per cent purity also tumbled by Rs 4,100 to Rs 1,21,200 per 10 grams from the previous close of Rs 1,25,300 per 10 grams, inclusive of taxes.
“Gold dipped further on Tuesday and extended losses due to diminishing safe haven demand. Selling accelerated and the yellow metal prices slid to a three-week low,” said Saumil Gandhi, senior analyst – commodities at HDFC Securities, as quoted by news agency PTI.
According to Gandhi, “the correction in gold will persist, with a potential downside of 5-10 per cent, likely as big players take profit after the price increased by more than 50 per cent this year.”