A rebound in global stock markets and crude oil prices has led to a fall in gold prices over the past few days. The yellow metal extended its losses for the third day on Tuesday, plunging below $1,200 per ounce, indicating receding interest among safe-haven seekers.
In the past three days, the metal has lost more than 4 percent, its biggest such drop in seven months, reports Reuters, adding spot gold dropped 1.5 percent to $1,191.40 an ounce during the day after earlier hitting a session low of $1,190.40.
Stock markets worldwide rallied on Monday after posting losses in the past few weeks after crude oil prices rose amid renewed hopes of a cut in production.
Opec and non-Opec producers including Saudi Arabia, Russia and Venezuela are slated to meet on Tuesday in Doha to address the issue of supply glut.
Top oil officials from Saudi Arabia, Russia and several key OPEC members will meet on Tuesday for their highest-level discussion in months, a potentially pivotal sign that producers are at last preparing to tackle a devastating supply glut.
Gold prices have touched $,1200 an ounce on Feb. 9, while in Mumbai, the yellow metal opened at Rs 28,205 per 10 gm on Feb.10, the highest after June 2014.
On Tuesday, gold futures price for Apr. 5 delivery was trading at Rs 28,607 at around 12.30 p.m., down 0.29 percent.
Reflecting the downtrend, gold exchange traded funds (ETFs) were in the red on the NSE. The net asset values were showing a decline ranging from 0.20 percent to 3.40 percent at around 12.40 p.m.
Trade data released by the government of India on Monday evening showed that gold imports into the country rose 85 percent to $2.91 billion from $1.57 billion in January 2015.
The country's gold imports stood at $3.80 billion in December 2015 and $3.53 billion in the preceding month, up from $1.70 billion in October 2015.
For the 10-month period ended January 2016, gold imports were valued at $29.36 billion, up from $27.42 billion during the corresponding period last fiscal, reports PTI.
Gold was the third largest commodity imported into India after crude oil and electronic items in FY2015, valued at $34.32 billion.