You are using an older browser version. Please use a supported version for the best MSN experience.

Gold hits 9-month low as RBI eases import curbs

LiveMint logoLiveMint 22-05-2014 PTI

New Delhi: Gold prices tumbled by Rs800 to hit nine-month low of Rs28,550 per ten grams in Delhi bullion market after the Reserve Bank (RBI) eased import norms. Besides, sluggish demand and subdued global cues also weighed on the precious metal prices.

Silver in range-bound movements fell by Rs50 to Rs41,650 per kg. Traders said sentiments turned weak on increased offerings by stockists, triggered by the Reserve Bank’s decision to ease gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the metal to boost exports. There are expectations that the RBI’s move would increase gold supplies and reduce prices in the domestic markets, they said.

The RBI in July last year had imposed severe restrictions on gold imports in order to check burgeoning current account deficit and sliding rupee. The central bank had tied imports with exports and prescribed a 20:80 formula. This facility was available to select banks only and other entities were barred from importing the metal.

Globally, gold in New York, which normally sets price trend on the domestic front, fell 0.19% to $1,291.90 an ounce in Wednesday’s trade. On the domestic front, gold of 99.9 and 99.5% purity plunged by Rs800 each to Rs28,550 and Rs28,350 per ten ten grams, levels last seen on 8 August last year.

Sovereign, too faced some pressure and lost Rs100 at Rs24,800 per piece of 8 gram. On the other hand, silver ready ruled shed Rs50 to close at Rs41,650 per kg while weekly-based delivery lost Rs210 at Rs40,990 per kg.

Silver coins continued to be asked around previous level of Rs79,000 for buying and Rs80,000 for selling of 100 pieces.

More From LiveMint

image beaconimage beaconimage beacon