Gold futures plunge below Rs 28,000 mark

Gold futures plunged more than 1% in electronic trade tracking weak overseas trend weighed by strong dollar after unexpected contraction in U.S. retail sales.

Globally, the yellow metal came under heavy selling pressure from exchange-traded fund following upbeat jobless claims data in Europe amid speculation that Cyprus may sell excess amount of gold to tide over its financial crisis, reports PTI.

International gold slipped more than 20% from its record 2011 highs. It was seen at $1,458 an ounce.

Other commodities also came under pressure following gold. Globally, investors are scrapping their gold holdings over a view that gold is no more safe-haven asset.

On Friday, gold prices fell to its 11-months low and closed below the Rs 29,000 per 10 gram mark as speculators off loaded their positions tracking overseas trend.

Domestically, gold futures for June contract was seen trading lower by Rs 347 at Rs 27,833 per 10 grams at 11.00 am IST on the Multi Commodity Exchange.

The fall in prices may attarct physical buyers of India, who waited long for the prices to come down.

Let us look at the prices across major metros as on 12 April 2013.

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