KOCHI: Gold price has dropped Rs 450 per 10 grams in two days in this week on account of weak global trends. On Tuesday, it slipped below the Rs 29,000 mark by falling Rs 250 to an over six-month low of Rs 28,800 per 10 grams in the bullion market.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity plunged Rs 250 each to Rs 28,800 and Rs 28,650 per 10 grams, respectively- a level last seen on May 31 when it had closed at Rs 28,850.
The precious metal was down by Rs 80 per sovereign (8gms) at Rs 21,520 on Tuesday compared to Monday's price. Sovereign followed the trend and traded lower by Rs 100 at Rs 24,300 per piece of eight grams.
“After demonetisation, footfalls in shops have witnessed a sharp decline. Large scale buying of jewellery has stopped. We hope that the low prices may urge people to buy the yellow metal,” said a jeweller in Kerala where gold price was Rs 2690 per gram.
Traders said sentiment was downbeat, largely in sync with a weak global trend, where gold closed at near 10-month lows as investors shrugged off the ongoing political turmoil in Italy that boosted the appeal of equities and other riskier assets.
A Geofin Comtrade report said that bullion continued decline weighed down by a steady dollar. “Gold in the international market traded at $1171 an ounce, down by 0.50 percent,” the report said.