Gold crashes to 5-week low on global cues

New Delhi: Gold on Wednesday plummeted by Rs 100 per 10 grams to a five week low in the national capital, after global investors shifted away to dollar from the precious metal as a safe haven.

After losing Rs 270 in the last two sessions, gold fell further by Rs 100 to Rs 28,440 per 10 grams on stockists selling and retailers expecting further fall.

Similarly in the Mumbai bullion market, gold lost Rs 165 to Rs 27,940 per 10 grams.

Bullion traders said selling pressure gathered momentum after gold prices overseas dropped.

In New York, the yellow metal declined for the fourth day, as concerns that Greece may have to leave the euro boosted the dollar and took away gold's appeal as an alternative asset.

The precious metal in Asia lost 0.7 per cent to $ 1,533 an ounce, more than 20 per cent below its all-time high last September, lowest since December 29.

Bullion traders said selling pressure gathered momentum after gold prices overseas dropped.

Lack of any trigger on the domestic front due to an "off-season", further dampened the trading sentiment in New Delhi, they added.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 100 to Rs 28,440 and Rs 28,300 per 10 grams, respectively. Sovereigns lost Rs 50 to Rs 23,600 per piece of eight grams. Meanwhile, rupee crashed to a historic all-time low of 54.50 against the US dollar.

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