Gold weakened by about 3 per cent on Friday on profit booking by a section of traders as they expected the yellow metal to continue its downward trend over the coming weeks weighed down by weaker oil and stronger dollar. | |
| Standard gold slumped by Rs 270 to Rs 9,225 per 10 gram in Jhaveri Bazar while pure gold closed at Rs 9,275 per 10 gram. |
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| Over the last one month, the yellow metal has witnessed a 6 per cent decline. Standard gold on August 10 was quoted at Rs 9,810 per 10 gram while pure gold was at Rs 9,860 per 10 gram. |
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| However, local traders, who expect the correction to be over soon, remained upbeat for the long run. |
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| "Gold is over reacting now and a correction is imminent in the next two days," says Bhargav Vaidya of B N Vaidya & Associates. Vaidya said the yellow metal would turn back very soon and would touch Rs 9,500 per 10 gram in September. |
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| The long-term trend is still bullish and this correction is expected to get over very soon, a trader said. Spot gold on the Shanghai Gold Exchange too closed lower on Friday, tracking overnight global losses amid active bargain hunting from jewelers. The benchmark 99.95 per cent purity gold in Shanghai fell CNY4.03 to close at CNY158.33 a gram, or $619.52 per oz. |
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| Pure gold of 99.99 per cent purity lost CNY3.99 to close at CNY158.71 a gram, or $621.01 per oz. Jewellers are on bargain hunting across the world thereby, bringing down the price. Gold consumption is expected to rise as seasonal buying would resume in India within the next fortnight, a trader said. |
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| Worldwide, gold price is declining owing to drop in demand from jewellery segment. Gold price in Hong Kong declined to close in the range of US$614.50 - 615.30 per ounce. |
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