Gold futures fall on global cues, poor demand

Tracking a weak trend overseas, gold prices fell by Rs 111 to Rs 22,088 per 10 grams in futures trade today as speculators reduced their positions.

Trading sentiment turned bearish after gold declined in global markets as weaker oil prices and a pledge by European Union leaders to avert a Greek default slashed the metal's appeal as a safe haven.

At the Multi Commodity Exchange, gold for delivery in August fell by Rs 111, or 0.50%, to Rs 22,088 per 10 grams, with a business turnover of 7,569 lots.

Likewise, the metal for delivery in October declined by Rs 110, or 0.49%, to Rs 22,360 per 10 grams in 228 lots.

Traders said besides a weakening global trend, fall in demand at existing high levels in the spot market mainly led to the decline in gold prices at futures trade.

Meanwhile, gold declined by 0.3% to $1,498.15 an ounce in Asian region.