Millennium Post

World gold ends year’s best run, still 9.4% below 11 April level

International gold prices fell on Tuesday after rallying for five days in the yellow metal's best run this year, declining with other commodities after data showed that China's manufacturing industries expanded at a slower than expected pace.

World gold lost 0.31 per cent to $1,421.90 per ounce. However, prices are still 9.4 per cent below the $1,561.45 close on April 11, before they plunged 14 per cent in two days, the worst slide since 1983. Silver too slumped 1.50 per cent to $23.06 an ounce.

The preliminary reading of 50.5 for the China Purchasing Managers Index, which was released by HSBC Holdings and Markit Economics earlier on Tuesday, compared with a final 51.6 for March, adding to concerns that the worlds second biggest economy may be faltering.

The number was below the median 51.5 estimate. World bullion rallied for five days through Monday, when it reached a one-week high of $1,439.30, as physical purchases increased.

The metal had plunged to a two-year low of $1,321.95 on April 16. Volumes on the Shanghai Gold Exchange's (SGE) benchmark cash contract jumped to a record on Monday, while sales of gold coins at the US Mint are almost triple so far in April compared with total sales a month earlier.

Meanwhile, in India gold prices eased after an overnight surge at the bullion market on Tuesday, following reduced offtake from traders and jewellers. The yellow metal's price was also influenced by the fall in the international markets.

Silver turned wobbly and slumped on heavy speculative unwinding, once again retracing Rs 45,000 per kg mark. Standard gold of 99.5 per cent purity declined by Rs 70 to end at Rs 26,630 per 10 gm from Monday's closing level of Rs 26,700.

Pure gold of 99.9 per cent purity moved down by Rs 75 to conclude at Rs 26,765 per 10 gm from Rs 26,840. Silver ready (.999 fineness) tanked by Rs 1,030 to finish at Rs 45,150 per kg from Rs 46,180 on Monday.
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