Gold drops on stronger dollar

Gold drops on stronger dollar

12/05/2016 12:52

Gold prices fell by 0.22 per cent on Thursday as a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand.

Gold futures for June 2016 contract, at MCX, were trading at Rs. 29,869 per 10 grams, down by 0.22 percent after opening at Rs. 29,886 against the previous closing price of Rs. 29,935. It touched the intra-day high of Rs. 29,892 till the trading. (At 12.40 PM today).

However, losses were limited with investors cautious ahead of the G7 meeting in Tokyo this month and June’s referendum on the UK and the European Union.

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