Gold crashes below Rs 25,000 to hit over 4-year lows
Gold lost Rs 40 to trade at over four-year lows of Rs 24,980 per 10 grams
New Delhi: Continuing its slide for the fourth consecutive day, gold prices on August 6 dipped below Rs 25,000 by losing Rs 40 to trade at over four-year lows of Rs 24,980 per 10 grams at the domestic bullion market.
Moreover, the precious metal was trading at five-year lows in the global market. Besides, there was an easing demand from jewellers as retailers deferred their buying plans on hopes of further dip in the yellow metal prices.
On the other hand, silver managed to recover some grounds on the back of scattered demand from consuming industries and rose by Rs 100 to Rs 33,800 per kg. Bullion traders saw a weak trend in gold where it traded at nearly five-year lows in global markets in anticipation of a possible rate hike by the US Federal Reserve in coming months.
The sentiment lifted dollar, eroding demand for the precious metal as an alternative investment, and dragged down gold prices to over four-year lows in the national capital. Drying up of demand from retailers as well as jewellers on hopes of further dip in prices too dampened trading sentiments, they said.
Globally, gold in Singapore, which normally determines price trend on the domestic front, was trading lower at USD 1,085.08 an ounce, near the lowest level in five years. In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 40 each to Rs 24,980 and Rs 24,830 per 10 grams respectively, its weakest level since August 6, 2011.
The precious metal has now lost Rs 280 in last three days. "Strengthening dollar, possible hike in rates by the US Fed and considerable fall in demand, dragged down the precious metal below the psychological Rs 25,000-mark," said Rakesh Anand, a Delhi-based bullion trader.
Tracking gold, sovereign fell by Rs 100 to close at Rs 22,100 per piece of eight grams. In contrast, silver ready managed to close higher by Rs 100 to Rs 33,800 per kg and weekly-based delivery by Rs 135 to Rs 33,565 per kg. Silver coins remained unchanged at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.