Gold futures extend losses on global cues, subdued demand

Gold futures prices today fell by 0.31% to Rs 26,050 per 10 grams as participants indulged in reducing exposures, largely in tandem with a global trend where the metal dipped to one-month low.

At the Multi Commodity Exchange, the June delivery fell by another Rs 81, or 0.31%, to trade at Rs 26,050 per 10 grams in a turnover of 1,790 lots.

The August contract shed Rs 57, or 0.22%, to Rs 26,155 per 10 gm in 160 lots.

Globally, gold lost as much as 0.60% to $1,377.85 an ounce in Singapore.

Analysts said sustained weakness in overseas where gold dipped to one-month low as holdings in exchange-traded products shrank, the dollar gained and a US Federal Reserve policymaker said that stimulus may be reduced within months, putting pressure on the precious metal prices here.

Besides, a weak trend at the domestic spot markets where gold dropped to one-month low also weighed on the prices, they said.

In spot market of Delhi, gold prices crashed by Rs 500 to Rs 26,800 per 10 grams in yesterday's trade.