Gold futures down on profit taking, strong dollar

Gold futures traded Rs 71, or 0.38 per cent lower at Rs 18,394 per ten gram, as traders booked profits amid higher dollar.

Weak trend in the other Asian markets also put some pressure.

All the three running contracts, June, August and October, were trading in negative zone with losses up to 0.38 per cent.

At the Multi Commodity Exchange, gold for delivery in June contract traded Rs 71, or 0.38 per cent down at Rs 18,394 per ten gram, with a turnover of 968 lots. It ended 0.20 per cent higher at Rs 18,465 per ten gram in the previous session.

Similarly, the metal for delivery in August contract fell by Rs 68, or 0.37 per cent at Rs 18,400 per ten gram, with a turnover of 1,045 lots, while delivery in October contract drifted by Rs 67, or 0.36 per cent to Rs 18,455 per ten gram, clocking a turnover of 29 lots.

Analysts said trading sentiment turned bearish after the US dollar strengthened, reducing the gold's appeal as an alternative investment.

Besides, profit taking at prevailing higher prices by speculators and closure of US markets on account of 'Memorial Day' also put pressure on the gold prices at futures market here, they added.

Memorial Day is a US federal holiday observed in remembrance of the nation's soldiers on the last Monday of May.

Meanwhile, gold dropped 0.08 per cent, to $1,213.30 an ounce in the Asian region.