- Spot gold closed Rs. 140 lower at at Rs. 30,710 per 10 grams
- At the MCX, gold for delivery in December was down by Rs. 104
- Fresh weakness in gold rate overseas weighed on gold futures
In futures trading at the MCX, gold for delivery in December too was down by Rs 104, or 0.35 per cent at Rs 29,750 per ten gram.
Analysts said that apart from profit-booking by speculators at existing levels, fresh weakness in gold rate overseas weighed on gold futures.
Experts are not very hopeful of an uptick in gold demand during Diwali. "Even this Diwali, we will see gold buying like every year but nothing overwhelming that significantly lifts demand. This again, in a way, is a reflection that India continues to remain a price taker and global macros continue to set the price of gold. Given that the dollar index has appreciated over the past two days, some correction in gold prices is being seen despite auspicious buying during Dhanteras," said Chirag Mehta, Senior fund Manager, Alternative Investments, Quantum Mutual Fund.
Silver also recorded a fall of Rs 400 to Rs 41,000 per kg even as retailers made token buying in coins. Silver ready also dropped by Rs 400 to Rs 41,000 per kg, while weekly-based delivery was down Rs 490 at Rs 39,990 per kg.
Meanwhile, Finance Minister Arun Jaitley today launched gold options trading on MCX and said this is one of the steps towards formalising gold trade. After the success of the gold options, MCX said it will approach the regulator Sebi (Securities and Exchange Board of India) seeking permission for other commodities like cotton, crude palm oil, silver and copper.
Dhanteras is considered to be a fortunate day to buy gold, silver and utensils. (With agency inputs)