At 1: 13 pm, the most-active gold for October delivery about the Multi Commodity Exchange (MCX) was 0. 81% lower from Rs 27, 914 rupees per 10 grams, after falling to some low of Rs 27, 860.
Global spot gold slipped underneath the weight of a rallying dollar, after falling more than 1% in the earlier session when the US Federal Reserve announced its intend to load up long-term securities and offered a grim financial outlook.
A softer rupee kept physical buying on the weaker, making the dollar-quoted yellow metal expensive for nearby traders. The rupee plays an important role in determining the landed cost from the yellow metal.
"Buying is zero.... rupee has depreciated by a lot more than 1%, " said Haresh Acharya, manager of bullion table at Parker Bullion in Ahmedabad.
The rupee fell 1% to its lowest in a lot more than two years, tracking weak local shares, after the dollar climbed to some seven-month high against major currencies, and traders said these were watching the central bank for support.
Source : Business - Standard