International Gold Plunges Amid Strong US data

International gold plunged on Friday after the strong US economic data fueled speculation that US Federal Reserve may hike in interest rates in coming policy meet.

The drop in US jobless claims raised expectations that interest rates in the US may rise, which dampened the yellow metal appeal.

Also, dollar re-gained strength after the marginal loss, weighed on the gold sentiment.

On Wednesday, Federal Reserve said that the economy was expected to pickup raising interest rate worry hikes. Most of the international markets such as Europe, China and Singapore were closed for the May Day holiday.

India, gold was also seen trading lower tracking global cues amid weak trend.

Bullion traders said sentiments turned bearish on weak global trend where gold extended the biggest loss in almost eight weeks after a report showed applications for US jobless benefits declined last week to the lowest in 15 years, boosting speculation that the Federal Reserve may raise interest rates sooner than expected, reports, PTI.

Gold of 99.9 and 99.5 per cent purity tumbled by Rs 285 each to Rs 27,190 and Rs 27,040 per 10 grams, respectively.

Gold Futures for the recent delivery closed at Rs 26,636 per 10 grams lower by Rs 80 or 0.30 per cent on Friday.

GoodReturns.in