Price of gold in India slid below the Rs.46,000-per-10gm mark for the first time in about eight months. This was the result of the US dollar becoming stronger due to rising bond yields in the world’s biggest economy, leading to a selloff in the yellow metal globally. According to data from MCX, the spot gold rate had dipped to Rs.45,900 levels on Friday, while gold futures for April expiry were trading at Rs.46,126 in the late evening session.
On the Chicago Mercantile Exchange (Comex) in the US too, the price of gold was at $1,784 per ounce — the lowest level since June 29.
Being a globally traded commodity, the yellow metal’s price in India fluctuates due to — other than the demand factor — the international price and also the rupee-dollar exchange rate. Of late, although the dollar has been strengthening against most major currencies, it has been hovering at the 73 mark for the last few months against the rupee.
On Thursday, the rupee had closed at 72.65 to the dollar (the interbank forex market was closed on Friday).