Gold futures fall 0.5% on global cues

Speculators offloaded their positions amid weak cues from global markets

Tracking a weak global trend, gold prices eased by 0.47% to Rs 26,509 per 10 grams in futures market today as speculators offloaded their positions.

At the Multi Commodity Exchange, gold for delivery in far-month February fell by Rs 125, or 0.47%, to Rs 25,509 per 10 grams in a business turnover of 265 lots.

Similarly, the yellow metal for delivery in December lost Rs 117, or 0.45%, to Rs 26,130 per 10 grams in 529 lots.

Market analysts said the fall in gold futures was mostly due to a weakening trend in the global market as crude oil at the lowest level in four years increased prospects for a cooling of consumer prices, reducing demand for an inflation hedge.

Meanwhile, gold in Singapore dropped 0.90% to $1,181.84 an ounce, the lowest since November 20.