Gold fails to glitter on Akshaya Tritiya as demand wanes

May 03 2014, 08:33 IST
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A stunning rebound in financial markets after recent turbulence and turmoil despite macroeconomic uncertainty also dampened the mood. A stunning rebound in financial markets after recent turbulence and turmoil despite macroeconomic uncertainty also dampened the mood.
SummaryA stunning rebound in financial markets after recent turbulence and turmoil despite macroeconomic uncertainty also dampened the mood.

Akshaya Tritiya, the biggest gold buying occasion, failed to trigger a buying frenzy as the yellow metal slumped further at the domestic bullion market here today on consistent selling from stockists and speculators amid global uneasiness.

The overall sentiment is negative for gold at this juncture after the recent imports curbs and duty hikes by the government to control ballooning Current Account Deficit and the scary fall in the value of the shiny metal worldwide.

A stunning rebound in financial markets after recent turbulence and turmoil despite macroeconomic uncertainty also dampened the mood.

Akshaya Triitya is considered to be an auspicious day to make token purchases of gold ornaments, jewellery, gold coins and other gold items.

Silver also plummeted further, extending its slide for the fifth session following heavy speculative unwinding as well as lacklustre industrial offtake.

Standard gold (99.5 purity) dropped by Rs 130 to end at Rs 29,800 per 10 grams from Wednesday's Rs 29,930.

Pure gold (99.9 purity) lost by similar margin to close at Rs 29,950 per 10 grams from Rs 30,080.

Silver (.999 fineness) slumped by Rs 220 to conclude at Rs 42,620 per kg as compared to Rs 42,840 previously.

Globally, the shiny metal plummeted to multi-week lows on strong US macro data following Federal Reserve's decision to reduce its monthly bond-buying program.

Gold for June delivery lost USD 12.50 to settle at USD 1,283.40 an ounce on the Comex division of the NYMEX late yesterday, while silver shed 13 cents to USD 19.04 an ounce.

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