Gold futures drop Rs 136 on weak global cues, profit-booking

Amid a weakening global trend and profit-booking by speculators, gold futures traded lower by Rs 136 at Rs 30,318 per 10 gram on May 4. Gold for delivery in far-month August was trading lower by Rs 136, or 0.45 per cent, to Rs 30,318 per 10 gram, in a business turnover of 14 lots at the Multi Commodity Exchange.

On similar lines, the metal for delivery in June eased by Rs 127, or 0.42 per cent, to Rs 30,097 per 10 gram in 119 lots. Analysts said the fall in gold futures was mostly in tandem with a weak trend overseas where the precious metal fell for a third day as the dollar rebounded on prospects of the US interest-rate increase next month, dimming the metal’s appeal as an alternative investment.

Globally, gold prices fell 0.5 per cent to USD 1,279.75 an ounce in Singapore. The metal reached USD 1303.82 on Monday, the highest intra-day level since January 2015.

Meanwhile, prices have rallied 21 per cent in 2016 after three years of losses, as investors returned to haven assets amid concerns that a deteriorating global economy may delay the end of low borrowing costs in the US.