Investors lose charm for gold; prices drop further

Wednesday, Jul 22, 2015,19:23 IST By metrovaartha A A A

New Delhi | Slack demand from India and China and  investors finding safe haven in dollar led to further decline in prices of gold which fell below the Rs 25,000 mark in futures while fresh jolt to the yellow metals are not ruled out in the global market.
While in the international market, the yellow metal touched a five year low of 1095 dollar an ounce , the standard gold was trading below Rs 25,000 per ten grams in India in the futures market, August delivery.
However, in the spot trading it was Rs 25,882 in Delhi and above Rs 26,160 per ten grams in Mumbai.
Though prices have seen a sharp drop, subdued demand in India and China , worlds two largest consumers , have added to the declining trend. In India, in the absence of wedding season demand and investors sitting on the fence, prices are slipping in sync with the global market, bullion  traders in Delhi and Mumbai said.
In the Indian market, prices are at a four year low, they said. As chances for increase in US interest rates rise, gold may test 1,000 dollar an ounce mark.
Contrary to gold, stock market touched new high with Sensex gaining over 322 points on strong inflows from foreign investors as falling crude oil prices.