Mumbai, Sep 14 () : Gold prices trading at Rs 34,439 dropped to Rs 29690 per 10 gms.
As international prices fell and improvement was seen in the rupee exchange rate, gold prices in the bullion market in Mumbai’s popular Zaveri Bazaar tumbled to below Rs 30,000. Gold fell in global markets after tensions in Syria reduced and gold as safe haven buying reduced.
Hitting a one-month low, standard gold dropped 8% to close yesterday at Rs 29690 per 10 grams. This is 1.74% lower than prices on Thursday. This has removed the premium on the spot market against the landed cost and there is no price difference in spot and future.
The multi-commodity exchange price was Rs 34439 /10 gms and Rs 32510/10 gms was the spot price a fortnight ago. Zaveri Bazaar wore a deserted look despite the festival season to start next month.
Meanwhile, Economic Advisor Rangarajan said that gold imports would be contained at $40 billion for the year ending March 2014. This is less than $53.8 billion of last year. The fall would take the trade deficit to 4.8% of GDP.
Import duty was raised to 10% and importers have to export 20%. Stockists for past three days have been selling as there are very few buyers. In earlier two trading sessions, the price dropped by Rs 570 and yesterday it closed at Rs 30750 losing another Rs 50.
Goldman Sachs has said that gold will decline further as US fed will ease on buying asset. Silver lost Rs 2000 yesterday and in two days it lost Rs 1030 to close at Rs 50,300 /kg.
Singapore market which dictates Indian gold prices shed 1% to reach $1308 an ounce. The lowest before was on August 9. In India, 99.9 and 99.5 per cent purity gold shed Rs 50 and 8 gm sovereign was Rs 25,000 losing Rs 100. With a bumper harvest and onset of Dhanteras and Diwali, the buying of yellow metal is expected to pick up in the retail.