The US bailout package coupled with the meltdown in the global financial markets are beginning to hit Gold. Gold prices slipped on Monday in futures trading on reduced buying by traders on the back of a weak global trend.
Gold for December contract fell 0.60 per cent at Rs 12,748 per ten gram on the Multi Commodity Exchange in a trading volume of 4,720 lots. The precious metal for February month declined 0.50 per cent at Rs 12,864 per ten gram in a trading volume of 48 lots, as the metal declined in global markets.
Some investors bought gold earlier as an insurance policy should the rescue package have not passed, and those players are now withdrawing from the market. Gold for December delivery closed down $11.10, at $833.20 an ounce on the Comex division of the New York Mercantile Exchange. The benchmark gold contract ended the week down $55.30.