Gold futures down on global cues, sluggish spot demand

June contract sheds 0.18% to Rs 29,117 per 10 gm, August gold loses 0.14%

Gold futures traded 0.18% lower at Rs 29,065 per 10 gm today largely in tandem with a weakening trend overseas amid subdued spot demand.

At the Multi Commodity Exchange, gold for delivery in June traded lower by Rs 52, or 0.18%, to Rs 29,117 per 10 gm, with a business turnover of 596 lots.

August gold lost Rs 41, or 0.14%, to Rs 29,447 per 10 gm in a turnover of 474 lots.

Meanwhile, the yellow metal fell as much as $1 to $1,561.50 an ounce in Singapore today.

Analysts said off-loading of positions by speculators driven by a weakening trend overseas as concern that Europe's fiscal crisis is escalating drove investors to seek the dollar, which reduced appeal of precious metal as an alternative investment, putting pressure on gold future prices here.

Further, a weak trend in domestic markets on subdued demand at higher levels, also weighed on prices, they said.