Gold slides to 2-week low as dollar, stocks rise

Gold fell two per cent to a two-week low today, on track for its biggest one-day drop since mid-April, as a breach of key chart levels prompted heavy selling of US futures, already under pressure from a stronger dollar and rising stocks markets.

Traders said sell stops were triggered as the metal broke support at $1,445 an ounce, prompting a sharp move down to session lows at $1,428.40 an ounce.

While Mumbai's bullion market was closed today to protest against newly introduced local body tax, gold fell on the MCX. June futures were down 1.6 per cent to Rs 26,726 per 10g today evening.

The fall could have been steeper but the rupee closed one per cent lower against the dollar today, limiting the fall in gold prices. The rupee today was down 55 paise to 54.80 per dollar.