India gold futures fell back on Tuesday afternoon

India gold futures fell back on Tuesday afternoon to their lowest level in a week, following overseas trends, where fears of a possible credit rating downgrade for euro zone nations by Standard & Poor’s weighed.

The most-active gold for February delivery on theMulti Commodity Exchange (MCX) was 0.54 percent lower at 28,890 rupees per 10 grams, after hitting 28,763 rupees, a level last seen on Nov. 26.

Silver also fell from the highest level in three weeks following the yellow metal.

The most-active silver for March delivery on the MCXwas 0.78 percent lower at 56,397 rupees per kg, falling from the previous day’s highest level since Nov. 16.

The ratings agency announced the warning just as leaders of France and Germany agreed a master plan involving treaty change to impose budget discipline across the euro zone, ahead of a key European Union summit on Friday.

Banks, the primary dealers of bullion, were shut for a public holiday, keeping the physical buying lacklustre. Wedding season is underway in India, the world’s biggest buyer of bullion. – Reuters

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Posted by admin on Dec 6 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