Gold and silver prices continued to tumble in India

Gold and silver prices continued to tumble in India, tracking weak global trends, but the slide failed to improve physical buying in the largest gold market.

On the Multi Commodity Exchange of India (MCX) gold for February delivery was seen trading at Rs 27,902 per ten grams at 4.00 p.m India time after hitting as low as Rs 27,718 per ten grams in early trade.

Analysts attributed gold’s decline in India to a weak rupee as the local unit plunged to its worst against the dollar recently.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. They also said eased wedding season demand has also contributed to lower physical buying in the country.

Buyers might be waiting for further price dips to purchase, they added.

In the International market, gold dropped on strong dollar after Federal Reserve released its policy statement were it held steady with no new market stimulus.

Silver also encountered hectic speculative offloading. Silver for March delivery was seen trading at Rs 53,574 per kilogram on the MCX after hitting as low as Rs 52,533 per kilogram in early trade. – Source: BullionStreet.com

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Posted by admin on Dec 15 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry