New Delhi / Mumbai / Chennai: Gold price across India and major cities tumbled on Wednesday.
Price dropped by a margin of 0.35 to 0.51 percent across key markets of India. The drop was heavy in Southern cities such as Kerala, Chennai, and even in Gulf markets.
The drop in price is attributed to a sudden lack of interest in the yellow metal among investors and institutional buyers in the wake of a weekly high posted by the US Dollar.
The US dollar and Spot Gold are mostly inversely proportional. Spot Gold at the time of updating this story was trading below the crucial $1,800 mark. US Spot Gold had climbed atop this mark in August.
Investors are keeping eyes on a crucial ECB (European Central Bank) meeting which is slated for Thursday. In the wake of positive cues or information about economic recovery, Gold rates may witness further volatility.
In India, gold rates have been heavily influenced by the rising Rupee. The Rupee has seen some strength against the US Dollar. Seven sessions ago, the Rupee touched 72.98, however as of Wednesday, the Rupee slipped to 73.62 levels. A stronger Rupee results in slightly affordable gold price.
For city-specific rates, please visit Sify Gold Rates.