Business Unusual - Gold prices fall in Chennai and in India

You don’t read this often – Gold prices nose dived to a 1 month low and yesterday the rate in Chennai  for 1 g of 24 Ct gold was Rs.2791.50 & Rs.2610/- for 22 ct gold.  Silver prices also plunged down to Rs.53075/- per kg from Rs.55150/-

The falling prices are perhaps a global phenomenon  - reportedly due to Europe's lingering financial troubles  settin gin a slide.  There appears to be greater slide in forward trade but still gold is still outperforming stocks three. 

Much of the decline in gold  is  blamed on questions about Europe's efforts to resolve its sovereign debt crisis and what the impact on the global economy will be.   In Global market, when investors are worried about weak dollar, they resort to buying gold. 

What ever it be, in India (and in Chennai) prices fell and here is what it was in Chennai retail market. 

As a natural corollary, the Gold ETFs also fell marginally and here is a chart of Kotak Gold ETF reaching nearer 2600 after peaking 2800 recently.

With regards – S. Sampathkumar.