Gold futures down on global cues, subdued domestic demand

New Delhi, PTI | Updated : 20 June 2013, 11:53 AM

Gold prices fell 0.42 per cent to Rs 27,894 per 10 gm in futures trade on Thursday as participants reduced their positions largely in tandem with a weak trend overseas.

Besides, subdued spot demand also weighed on the prices. At the Multi Commodity Exchange, gold for delivery in August contracts eased by Rs 117, or 0.42 per cent, to Rs 27,894 per 10 gm in business turnover of 1,275 lots.

Likewise, the metal for delivery in far-month October shed Rs 112, or 0.40 per cent, to Rs 28,063 per 10 gm in 66 lots.

In the spot markets, gold prices dropped by Rs 80 to Rs 28,400 per 10 gm in the national capital in yesterday's trade.

Analysts said besides subdued domestic demand, a weak trend in the overseas markets as the US Federal Reserve Chairman Ben Bernanke said it could start tapering off its massive stimulus programme later this year, mainly weighed on gold prices at futures trade here.

They said, however, depreciating rupee which slumped to a record low of 60 against the dollar, cushioned the fall as weak rupee makes imports costlier.

Globally, gold fell 0.9 per cent to USD 1,339.55 an ounce, the cheapest since May 20 in Singapore on Thursday.

First Published: Thursday, June 20, 2013 11:52 AM
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