Gold prices have tumbled by Rs 330 to trade over 3-month lows at Rs 26,170 per ten grams at the bullion market, due to a weak global trend amidst easing demand from jewelers. Falling demand in the domestic market from jewelers and retailers has also weighed on the prices
Bullion merchants said this is due to the dampened sentiments after gold in the global market has plunged to the lowest level as a China-led equity market routed across the Asia region and the crisis in Greece has boosted the dollar by dampening the demand for the precious metal as an alternative investment.
Analysts said the weak trend in the overseas markets where gold fell traded near the lowest level across Asia and the crisis in Greece has boosted the dollar, thereby reducing the appeal of the precious metal, which is weighed on its prices at futures trade.
Globally, gold traded lower at USD 1,153.72 an ounce in Singapore, when compared a day earlier at US $ 1,155.26. The value sank as much as 1.9 per cent to US $ 1,148.13, the lowest since March 18.