As stock markets gained slightly of late, improving investor appetite for risk, gold plunged on Monday with a slightly stronger US dollar also sapping bullion's appeal.
As stock markets gained slightly of late, improving investor appetite for risk, gold plunged on Monday with a slightly stronger US dollar also sapping bullion’s appeal. The spot gold was down 0.2 percent at $1,223.05 an ounce at 1302 GMT, having hit a 2-1/2-month peak last week at $1,233.26 per ounce. The US gold futures plunged 0.2 percent at $1,226.90 an ounce,. Reuters reported.
“The fundamental outlook for gold is still looking a little bleak despite the recent recovery, so I would not be surprised if gold was to falter from here,” Reuters reported citing Fawad Razaqzada, an analyst with Forex.com.
Geopolitical concerns, including tensions between Saudi Arabia and the West over the killing of journalist Jamal Khashoggi, and developments related to Brexit were seen keeping some investors favourably disposed towards gold, Reuters reported.
Meanwhile, Sensex and Nifty — the benchmark indices of the Indian stock markets — slipped into the negative territory during the last hour of trade, extending losses for the second consecutive session on Monday. Profit booking by investors, along with a weak rupee on the back of rising crude oil prices, and consistent outflow of foreign funds, pulled the stock markets lower despite favorable global markets.
The BSE Sensex, which surged over 400 points in early morning trade, shed over 614 points from the day’s high to close Monday’s trade at 34,134.38 points, down 181.25 points or 0.53% from its previous close. Reliance Industries was the top contributor to the Sensex’s fall, wiping off 127 points from the index. RIL share price was followed by IndusInd Bank (-67.97 points), Kotak Bank (-39.14 points), Infosys (-16.64 points), Asian Paints (-16.56 points) and Infosys (-16.08 points).