Gold falls below Rs 49,000 as investors rush to book profit

Gold falls below Rs 49,000 as investors rush to book profit

Gold prices tanked to settle at Rs 48,818 per 10 gram on January 8 as participants increased their short position as seen by the open interest. The precious metal ended the week with a loss of Rs 1,417 or 2.82 percent for the week.

The yellow metal traded lower, tracking gains in the dollar, higher treasury yields, global equity markets trading at a lifetime high, and easing of political risk as Donald Trump agreed to an orderly transition of power.

In the retail market, the bullion closed at Rs 50,421 per gram on January 8 down 1.23 percent on the rupee depreciation and weak global cues but gained Rs 123 or 0.25 percent during the week. The premium charged by dealers over official domestic price fell to $1.5 per troy ounce this week from $2.5 last week.