Gold futures down on weak global cues

Mumbai-India  (May 23)  Gold prices fell further by 0.40 per cent to Rs 26,205 per 10 grams in futures trade today as participants engaged in reducing positions in tandem with a weak trend overseas where precious metal dropped to over 15-week low.

At the Multi Commodity Exchange, gold for delivery in August eased by Rs 104, or 0.40 per cent, to Rs 26,255 per 10 grams in a business turnover of 134 lots.

Likewise, the metal for delivery in June shed Rs 90, or 0.33 per cent, to Rs 26,868 per 10 grams in 778 lots.

Market analysts said a weakening trend in the overseas markets where gold fell to over 15-week low as encouraging US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus, while demand in China showed

signs of waning, weighed on the precious metal at futures trade here.

Besides, strengthening dollar also reduced the appeal of the bullion, they said.

Globally, gold fell 0.30 per cent to USD 1,260.97 an ounce in Singapore today, the lowest price since February 7.