Gold futures weaken on spot demand

Gold prices fell by Rs 15 to Rs 31,581 per 10 gram in futures trade Tuesday on weak demand as strong equities reduced gold's appeal.

Investor sentiment in stock market turned positive in early trade Tuesday on reports that India has lined up alternate sources to make up for the likely shortfall in supplies after the US decided not to give waiver from its sanctions for buying oil from Iran, traders said.

Besides, strengthening rupee also exerted pressure on gold futures.

At the Multi Commodity Exchange, gold for delivery in June traded lower by Rs 15, or 0.05 per cent, at Rs 31,581 per 10 gram in a business turnover of 14,014 lots.

Gold for delivery in August fell by Rs 25, or 0.08 per cent, to Rs 31,740 per 10 gram in 3,018 lots.

However, globally, gold was trading higher by 0.01 per cent at USD 1,273.64 an ounce in Singapore.