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.
Join the Conversation
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- BlackBerry Classic (aka Q20) Keyboard Shortcuts Explained In A Quick Video
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Samsung Galaxy Note Edge Battery Life Test Shows Its Curved Display And Build Has Impacted Its Battery Performance