Gold futures tumbles 2.08 pc on global cues, low spot demand

Tracking a weak global trend, gold prices plunged 2.08 per cent to Rs 26,248 per ten grams in futures trade today as speculators indulged in reducing positions.
Market analysts said sentiment dampened after gold dropped to the lowest level since 2010 as dollar strengthened after the Bank of Japan unexpectedly boosted stimulus and the US Federal Reserve ended bond-purchase programme, eroding demand for the precious metal.
In addition, fall in demand from jewellers and retailers at domestic spot markets due to end of festive season too weighed on gold prices at futures trade here.
At the Multi Commodity Exchange, gold for delivery in February next month fell sharply by Rs 557, or 2.08 per cent, to Rs 26,248 per ten grams in business turnover of 303 lots.

Similarly, the yellow metal for delivery in June contract declined by Rs 539, or 2.03 per cent, to Rs 26,064 per ten grams in 13,502 lots.
At the bullion market in the national capital, gold prices tumbled by Rs 600 to trade at over one-month low of Rs 26,500 per ten gram.
Globally, gold tumbled 2.00 per cent to 1,175.38 dollar an ounce, the lowest since July 2010 in London.