Gold futures drop Rs 136 on weak global cues, profit-booking

Amid a weakening global trend and profit-booking by speculators, gold futures traded lower by Rs 136 at Rs 30,318 per 10 gram today.

Gold for delivery in far-month August was trading lower by Rs 136, or 0.45%, to Rs 30,318 per 10 gram, in a business turnover of 14 lots at the Multi Commodity Exchange.

On similar lines, the metal for delivery in June eased by Rs 127, or 0.42%, to Rs 30,097 per 10 gram in 119 lots.

Analysts said the fall in gold futures was mostly in tandem with a weak trend overseas where the precious metal fell for a third day as the dollar rebounded on prospects of the US interest-rate increase next month, dimming the metal's appeal as an alternative investment.

Globally, gold prices fell 0.5% to $1,279.75 an ounce in Singapore. The metal reached $1303.82 on Monday, the highest intra-day level since January 2015.

Meanwhile, prices have rallied 21% in 2016 after three years of losses, as investors returned to haven assets amid concerns that a deteriorating global economy may delay the end of low borrowing costs in the US.