Gold Drops Nearly 1% to Lowest in Seven Months
February 21, 2013 4:34 PM EST
Gold futures in India, the world's biggest consumer of the metal, fell 0.9 percent on Thursday morning to their lowest level in seven months, mirroring a similar trend overseas, though a weak rupee limited the downside.
At 10:08 a.m., the most active gold contract for April delivery on the Multi Commodity Exchange was 0.92 percent lower at 29,307 rupees per 10 grams, after falling to 29,305 rupees earlier, the lowest level since July 23, 2012.
In the overseas market, gold dropped to a seven-month low on Thursday, its third straight session of weakness, as signs that some Federal Reserve officials were reconsidering the scale and duration of the U.S. monetary stimulus programme spooked investors.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, fell on Thursday.
Alarmed by the mounting current account deficit that hit a record 5.4 percent of gross domestic product in July-September, the government moved to rein in its gold imports -- second only to oil in value -- by raising the import duty on the precious metal to 6 percent from 4 percent on January 21.
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS