KOCHI: Gold prices dropped by Rs 200 to Rs 29,050 per 10 gm at the bullion market on Monday owing to cash crunch and global cues.
In New Delhi, 99.9 per cent and 99.5 per cent purity gold fell Rs 200 each to Rs 29,050 and Rs 28,900 per 10 grams respectively. The yellow metal had gained Rs 250 on Saturday. Globally, gold fell 0.64 per cent to $1,169.60 an ounce in Singapore.
“Continued decline weighed down by a strong dollar. Concerns over physical demand from India after the union government puts limits on gold holdings and reports of import restriction sets by Chinese Central bank pressured prices. In the international spot market, gold traded near $1164 an ounce, down by about one percent,” said a Geofin Comtrade report.
Silver however, strengthened by Rs 200 to Rs 41,200 per kg on increased offtake by industrial units and coin makers.
“The unavailability of money with consumers is weighing down on the precious metal. Even though the initial crisis has softened now. We expect that the price of gold will gain in the near future,” said Girirajan of Bhima Group. Fall in demand from jewellers and retailers due to lack of funds is a major reasons for the fall.