Gold futures slip from record-level on weak Asian cues

Gold prices today declined by Rs 643 to Rs 27,326 per 10 grams from the record levels due to fresh selling by speculators at existing high levels in tandem with a weak trend in the Asian region.

Gold futures climbed to an all-time high of Rs 29,091 per 10 grams yesterday.

A bounce back in equity markets led to diversion of investor funds from bullion and further influenced the trading sentiment to some extent, dealers said.

On the Multi Commodity Exchange, October gold lost Rs 643, or 2.30%, to Rs 27,326 per 10 grams, clocking a business volume of 20,439 lots.

The December contract dropped by Rs 635, or 2.24%, to Rs 27,601 per 10 grams, with a business volume of 2,6061 lots.

Market analysts said a weak trend in the Asian region as a rebound in equities trimmed demand of investors seeking to protect their wealth against declining currencies and economic turmoil, mainly pulled down gold futures prices here.

Bullion dropped from a record $1,921.15 an ounce yesterday as the dollar advanced for a sixth day against a six-currency basket, including franc, after the Swiss Central Bank set a ceiling on the exchange rate.

The gold in Asian, which normally sets the price trend in domestic market here, fell 2.6% to $1,827.57 an ounce.