Zee Media Bureau
Gold prices dipped below Rs 26,700 mark by falling Rs 221 to Rs 26,680 per 10 grams in futures trade Thursday as market participants indulged in reducing exposures, largely in tandem with a weak global trend.
At the Multi Commodity Exchange (MCX), gold for delivery in October tumbled by Rs 221 to Rs 26,680 per ten grams after moving in range of Rs 26,666 - Rs 26,845.
Analysts said a weakening trend overseas after the US Federal Reserve increased its interest-rate projections, spurring gains in the dollar that reduced demand for the precious metals, put pressure on gold prices at futures trade here.
Gold in overseas markets, which normally set price trend on the domestic front, dropped to its lowest in 8-1/2 months today as the dollar index jumped to a four-year peak after the Federal Reserve signalled that a faster hike in US interest rates might be on the horizon.
The Fed on Wednesday renewed its pledge to keep interest rates near zero for a "considerable time", but also indicated it could raise borrowing costs faster than expected when it starts moving.
Globally, gold lost as much as 0.60 percent to USD 1,216.30 an ounce in Singapore, the lowest sicne January 2.
