Gold tumbled today as the dollar rallied by reducing the appeal of bullion as an alternative asset. Bullion closed 1.5 percent for 2014, compared with an average movements annually 12 percent in the past 14 years. The prices hit a four-year low last month as equities were recovered and the investors speculated that the Federal Reserve is preparing to raise interest rates.
Gold futures for February delivery fell 1.4 percent to settle at $1,184.10 an ounce on the Comex in New York.
Assets in the SPDR Gold Trust dropped 0.2 percent yesterday to 710.81 metric tons, the lowest since September 2008, data compiled by Bloomberg show.
At the Multi Commodity Exchange ( MCX), the February contract fell Rs 28, or 0.10 per cent, to Rs 26,675 per ten grams.
The Indian rupee currency on Thursday weakened versus the dollar after the fiscal deficit in India reached 99% of its budgeted estimates raised concerns among traders that the Government will is unlikely to achieve its target of 4.1% of gross domestic product (GDP).
Bullion Analysts attributed the fall in gold futures to weak global trends.
For latest commodity market tips, MCX tips, news & updates with 100McxTips, for latest updates follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at email@example.com or Call: +91-761-4012307