Global cues drags gold down in futures trade

Eurozone woes, sluggish demand in local markets owing to high prices weighs on gold

Gold prices fell by Rs 49 to Rs 28,512 per 10 gm in futures trade today largely in tandem with the weak trend in overseas markets.

Sentiment in markets dampened as gold prices dropped for the third consecutive day in global markets on concerns that the ongoing Eurozone debt crissi would further weaken the euro against the dollar, thus trimming demand for the metal.

At the MCX, gold for delivery in June fell by Rs 49, or 0.17% to Rs 28,512 per 10 gm in business turnover of 4,971 lots.

The August contract shed Rs 46, or 0.16 per cent, to Rs 28,920 per 10 gm in 272 lots.

Analysts said, besides weakening global trend, domestic gold prices were also pulled down by sluggish demand at prevailing high price levels in the spot market

Gold lost 0.3% to $1,646.30 an ounce in Singapore.