Gold Tumbles Rs 3300 as Dollar Strengthens and Traders Book Profits

Gold prices in India's national capital have tumbled by Rs 3,300 to Rs 1.62 lakh per 10 grams on Friday due to a strengthening US dollar and profit-booking by traders.

The three-day decline has pulled gold down by Rs 4,700, or nearly 3 percent, from its price of Rs 1,67,100 per 10 grams on August 25.

Traders had been booking profits for the third straight session after a recent rally as the US dollar regained strength above the 99.15 level.

The domestic bullion market also faced pressure from reports of a customs duty cut by the central government due to rising smuggling activity.