Gold futures slide on weak domestic demand

Gold prices fell 0.45 per cent to Rs 31,790 per 10 gram in futures trade Wednesday as speculators cut down their bets amid weak demand cues.

At the Multi Commodity Exchange, gold prices for delivery in February next year fell sharply by Rs 145, or 0.45 per cent, to Rs 31,790 per 10 gram in a business turnover of 15,285 lots.

The gold for delivery in far-month April, too, was quoting lower by Rs 119, or 0.37 per cent, at Rs 31,970 per 10 gram in 1,875 lots.

Analysts attributed the fall in prices to trimming of positions by participants, tracking a weak trend in domestic market.

However, internationally gold prices were steady early on Wednesday, supported by expectations of fewer rate hikes by the US Federal Reserve next year. The US gold futures rose 0.10 per cent at USD 1,243.28 an ounce.

Meanwhile, gold rose 0.11 per cent at USD 1,243.09 an ounce in Singapore.