Gold futures decline on weak global cues, demand

Gold futures today fell by 0.72% to to Rs 31,1719 per 10 gm as speculators reduced their positions, taking weak cues from the global market amid slackened demand at spot markets.

At the Multi Commodity Exchange, the February gold fell by Rs 226, or 0.72%, to Rs 31,171 per 10 gm in a business turnover of 5,4295 lots.

The April delivery fell by Rs 220, or 0.69%, to Rs 31,586 per 10 gm in 240 lots.    

Market analysts attributed the fall in gold futures prices to a weak trend overseas where it fell to a one-week low as some investors indulged in selling after recent rally amid concern about the US budget deadlock.

Besides, fall in spot demand at domestic markets also kept pressure on the precious metal prices, they added.

Meanwhile, gold fell 1% to USD 1,694.35 an ounce in Singapore, the lowest level since December 7.