Gold prices fall below Rs. 25,000 on weak global cues

Globally, gold prices have taken a hit in anticipation of rate hike by the US Federal Reserve. A stronger dollar in view of the Fed rate hike has also dented sentiment for the precious metal.

Gold prices in India dropped below Rs. 25,000 per 10 gram on Thursday even as international prices of the yellow metal continued to hover around five-year lows.

In Delhi, gold of 99.9% and 99.5% purity fell by Rs. 40 each to INR 24,980 and INR 24,830 per 10g, respectively, its weakest level since 6th August 2011. Domestic gold prices have now lost INR 280 in the last three days.

In the domestic market, demand from retail investors is said to be low, as they expect gold prices to sink further.

Globally, gold prices have taken a hit in anticipation of rate hike by the US Federal Reserve. A stronger dollar in view of the Fed rate hike has also dented sentiment for the precious metal.

Gold prices in London are heading for a seventh straight week of losses, the longest stretch in a decade.

Meanwhile, Gold futures traded in New York finished higher on Thursday as US stocks declined a day ahead of the monthly jobs report.

Gold futures for August delivery settled up US$4.50, or 0.4%, to US$1,090.10 an ounce, after closing at US$1,085.60 in the prior session.