Gold continues to sail in rough water

Gold futures slumped sharply today, slipping below the $750 mark on COEMX as the recent losses were seen getting extended further on continued risk aversion in the global asset markets. The US dollar has replaced Gold in the battle of the safe havens in the last few days and with the greenback convincingly hitting a 23 month high of 1.2737 against the Euro today, the tide turned in the favor of the currency quite swiftly, undermining Gold drastically in the process. The market participants seemed to have eyed the recent price action in Gold prices while sending it to the gallows even in times of utter stress in the global equities. The yellow metal had gone up formidably earlier in the month, when the COMEX futures topped a two and half month high of $936.30 per ounce. However, the decline in the yellow metal has also been quite steep afterwards, with nearly 200 dollars correction in a span of less than two weeks cluttering the sentiments for the yellow metal. COMEX Gold futures slumped to a low of $748 per ounce in the electronic trades and currently move at $754.30, down $13.70 from the previous close. MCX Gold also lost out heavily, slumping just above the key level of Rs 12000. MCX December contract rebounded from the days low of Rs 12095 to trade at Rs 12134 per 10 grams, down RS 236 or 1.91% from the previous close with 2% increase in the open interest. Meanwhile, the domestic Gold prices slumped sharply in resource to a dramatic collapse in the international prices. Local prices lost by sharply in all the major trading centers in the country. Standard Gold of 0.995 variety trade at Rs 12213 per 10 grams in Ahmedabad, down almost Rs 300 from the previous close at neared its lowest level in six weeks. Similar show was seen in Mumbai too, where pure Gold of 0.999 variety fell also fell to six week low of Rs 12256 per 10 grams.