New Delhi: Gold prices fell 0.42% to Rs27,894 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 Rs117, or 0.42%, to Rs27,894 per 10 gm in business turnover of 1,275 lots. Likewise, the metal for delivery in far-month October shed Rs112, or 0.40%, to Rs28,063 per 10 gm in 66 lots.
In the spot markets, gold prices dropped by Rs80 to Rs28,400 per 10 gm in the national capital in Wednesday’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 in India.
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% to $1,339.55 an ounce, the cheapest since 20 May in Singapore on Thursday.