Gold futures extend losses by 3.5% on global cues, subdued spot demand

After remaining weak in early trade, gold continued its slide and prices fell further by 3.50% to Rs 27,031 per ten grams in futures trade today, taking weak cues from the global markets.

Besides, subdued demand in the spot markets also influenced gold prices.

At the Multi Commodity Exchange, the most-active delivery in August contracts traded Rs 980, or 3.50% lower at Rs 27,031 per 10 grams, clocking a turnover of 44,961 lots.

On similar lines, gold for delivery in October fell sharply by Rs 925, or 3.28% to Rs 27,250 per ten gram in 1,699 lots.

At the spot markets, gold traded Rs 400 lower at Rs 28,000 per 10 grams in the national capital.

Analysts said besides subdued spot demand, a weak trend in the global market, where it dropped to 2-1/2 years after US Federal Reserve Chairman Ben S Bernanke said asset purchases may be reduced later this year, weighed on gold prices at futures trade here.

Globally, gold dropped by 3.4% to $1,304.75 per ounce in early trade, its lowest since September 30, 2010 in London.