Due to a fall in the international price of gold and sharp improvement in the rupee exchange rate, gold prices tumbled to below Rs 30,000 per 10g at Zaveri Bazaar here.
Standard gold fell almost eight per cent from a peak seen a fortnight earlier in the spot market to a month's low), to close at Rs 29,690 per 10g on Friday. This is 1.7 per cent lower than Thursday. However, this fall has not only wiped out the differences between spot and futures prices but also erased the premium in the spot market over the landed cost. Gold was quoted on Friday almost at par with the imported price.
Two weeks earlier, gold for near-month delivery was trading at Rs 34,439 per 10g on the MCX
, as against the spot price of Rs 32,510 per 10g..
"Buyers remained totally absent from the street. With the festival season two weeks away, the demand is likely to resume early October," said Lalit Jagawat, proprietor of Nakoda Bullion, a bullion dealer in Zaveri Bazaar.