Gold falls by 0.5% in futures trade as weak global cues hurt

Gold prices fell Rs 145 to Rs 26,643 per 10 grams in futures trade today as participants trimmed their positions, largely in line with a weak trend overseas.

At the Multi Commodity Exchange, gold for delivery in December was trading lower by Rs 145, or 0.54%, at Rs 26,643 per 10 grams in a business turnover of 728 lots.

Also, the metal for delivery in far-month February next year shed Rs 139, or 0.52%, to Rs 26,850 per 10 grams in 32 lots.

Analysts said a weakening trend in the overseas markets where gold retreated from seven-week high as investors weighed the probable timing of the first US interest rate increase since 2006, with one Federal Reserve policy maker saying that the move before year-end was justified while others differed, weighed on the precious metal in futures trade.

Globally, gold fell 0.5% to $1,157.95 an ounce in Singapore.