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Saturday, 13 April 2013

Gold, crude oil prices fall sharply


Gayatri Business Solution

Gold, crude oil prices fall sharply

The current account deficit for the October-December quarter widened to 6.7% of GDP
India's two largest imports - crude oil and gold - saw their prices fall sharply on Friday, raising hopes for the country's stressed balance of payments and fiscal deficit.

Frantic sell-offs in gold pushed the price of the yellow metal to below Rs 29,000 for 10 grammes in the local market for the first time in 11 months. In late kerb deals, gold was quoted at Rs 28,500, against the official closing of Rs 28,890, while on MCX futures, gold was traded around Rs 28,250 per 10 g and silver futures stood at Rs 49, 400 per kg. Trading sentiments for gold in India were hit by the precious metal's sharp correction in markets abroad in the last two days, traders said. Yesterday's holiday in the bullion market restricted speculators from offloading their long positions, they added.

On the global front, the yellow metal came under heavy selling pressure from exchange-traded funds, following upbeat jobless claims data in Europe and amid speculation that Cyprus might sell excess gold to tide over its financial crisis. Spot gold was sharply lower at $1,503.50 an ounce in early trading in the US. Prices fell to $1491, which slightly rebound later.

Brent crude oil sank to an eight-month low of nearly $102 a barrel on Friday as the outlook for global oil demand growth dimmed. Weakening crude oil prices tend to have a positive impact on India

Source :- http://www.business-standard.com/article/economy-policy/gold-crude-oil-prices-fall-sharply-113041300014_1.html

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