Gold futures in India, the world's biggest buyer of the metal, dropped nearly 3 per cent on Monday to hit their lowest level in 15-1/2 months, mirroring losses in the world market.
At 10.46 am, the key gold contract for June delivery on Multi Commodity Exchange was down 2.64 per cent at Rs 27,189 per 10 grams, after falling to Rs 27,100 earlier, the lowest level since December 30, 2011.
In the overseas market, gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough after bullion futures fell on fears about central bank sales and holdings on global exchange-traded funds sank to their lowest in more than a year.
The wedding season has begun in India and will continue till early June. Akshay Tritiya, the second biggest gold buying festival after Dhanteras, also falls in this period.
Copyright @ Thomson Reuters 2013
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