Business
Kalyan Jewellers falls over 2%, PC Jeweller slips as bullion prices tumble
Kalyan Jewellers falls over 2%, PC Jeweller slips as bullion prices tumble
About this update from Pc Jeweller Ltd.
Shares of jewellery retailers traded lower on Wednesday as a sharp fall in global precious metal prices weighed on sentiment.Kalyan Jewellers declined 2.62 percent to Rs 345.75, while PC Jeweller fell 1.92 percent to Rs 8.69 in afternoon trade.The weakness in the stocks came as gold prices extended losses in international markets. According to Bloomberg, bullion fell as much as 2.1 percent to around $4,173 an ounce on Wednesday after declining 1.6 percent in the previous session.Bloomberg reported that the latest selloff followed US strikes on Iranian sites near the Strait of Hormuz, after Washington blamed Tehran for downing a US military helicopter off the coast of Oman. The escalation has added to uncertainty surrounding efforts to end the conflict in the region.The report noted that gold is now trading about 20 percent below levels seen before the Iran conflict began in late February. Bloomberg added that the metal's drop below its 200-day moving average, a key long-term technical indicator tracked by institutional investors, has triggered additional selling pressure."We expect price action to become more vulnerable in the near term," Bloomberg quoted Suki Cooper, global head of commodities research at Standard Chartered Plc, as saying. She added that further declines in bullion could expose the market to additional downside risks.According to Bloomberg, spot gold was down about 2 percent at $4,176.89 an ounce in Singapore trading. Silver fell 2.5 percent to $63.75 an ounce, while platinum dropped more than 4 percent and palladium also traded lower.