India gold prices declined by 0.58 per cent to Rs 27,600 per 10 grams

Gold prices declined by 0.58 per cent to Rs 27,600 per 10 grams in futures trade today in tandem with a weakening trend overseas as the US dollar strengthened, reducing demand for precious metals.

At the Multi Commodity exchange, gold for delivery in February eased by Rs 162, or 0.58 per cent, to Rs 27,600 per 10 grams, with a business turnover of 3,747 lots.

In a similar fashion, the metal for delivery in April lost Rs 164, or 0.58 per cent, to Rs 27,943 per 10 grams, with a trading volume of 254 lots.

In Asian trade, gold lost as much as 0.8 per cent to USD 1,605.30 an ounce in Singapore in early trade today.

Analysts said reports of a weakening trend in precious metals amid concerns that Europe’s debt crisis may escalate pulled down the euro against the dollar, dampening demand for gold futures as a safe haven investment.

Silver futures moved down by 0.68% to Rs 51,492 per kg today amid weak cues from global markets.

Subdued demand in the physical market also weighed on silver futures prices here.

At the Multi Commodity Exchange, March silver fell by Rs 353, or 0.68%, to Rs 51,845 per kg in 7,839 lots.

The May contract declined by Rs 357, or 0.67%, to Rs 52,607 per kg in 327 lots.

Market analysts said a weak trend in global markets on concerns that Europe’s debt crisis may escalate drove the euro lower against the dollar, reducing demand for the metal as a safe haven investment.

Meanwhile, silver fell by 0.4% to $28.66 an ounce in Singapore. – PTI

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Posted by admin on Jan 9 2012. 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