Gold falls by 1.4% amid weak global cues

Amid a weakening global trend, gold futures traded lower by Rs 416 at Rs 29,224 per 10 gm today as speculators trimmed their positions.

Besides, profit-booking by speculators at existing levels weighed on the precious metal prices.

Gold for delivery in far-month June dropped Rs 416 or 1.40% to Rs 29,224 per 10 gm in a business turnover of 79 lots at the Multi Commodity Exchange.

In a similar fashion, the metal for delivery in April was trading down Rs 403, or 1.37% to Rs 28,983 per 10 gm in 1,398 lots.

Market analysts said the fall in gold futures was mostly in tune with a weak trend overseas where rally in the precious metal faltered as rising share markets and a firmer yuan eroded demand for the safe-haven as an alternative investment.
 
Meanwhile, gold prices fell 1.3% to $1,221.91 an ounce in Singapore today.