Gold at 5-mth low on strong dollar

Gold in the national capital on Tuesday dipped Rs 176 to Rs 45,110 per 10 gram. In the previous trade, the precious metal had closed at Rs 45,286 per 10 gram. Silver also tumbled Rs 898 to Rs 61,765 per kilogram from Rs 62,663 per kilogram in the previous trade. In the international market, gold was trading with gains at $1,735 per ounce and silver was flat at $23.56 per ounce. "Gold prices rebounded from recent lows but still trading near five-month lows on heightened market expectations of tapering and stronger dollar," said Tapan Patel, HDFC Securities, senior analyst (commodities). Gold futures surged Rs 135 to Rs 46,021 per 10 grams on MCX as speculators created fresh positions on a firm spot demand. On the Multi Commodity Exchange (MCX), gold contracts for the October delivery traded higher by Rs 135, or 0.29 per cent, to Rs 46,021 per 10 gram in a business turnover of 13,724 lots. Fresh positions built up by participants led to the rise in gold prices, analysts said. Gold prices traded 0.50 per cent higher at $1,735.20 per ounce in New York.