Gold falls by 0.5% on weak global cues

Profit-booking by speculators also affected prices

Amid a weakening global trend and profit-booking by speculators, gold futures traded lower by Rs 127 at Rs 25,973 per 10 gram today.

Gold for delivery in February contract eased Rs 127, or 0.49% to Rs 25,973 per 10 gram in a business turnover of 423 lots at the Multi Commodity Exchange.

In a similar fashion, the metal for delivery in far-month April was trading down Rs 127, or 0.48% to Rs 26,100 per 10 gram in 3 lots.

Analysts said the fall in gold futures was mostly in tune with a weak trend overseas where the precious metal pared its best weekly advance since August as global markets rallied after China reassured investors by refraining from a further cut in its exchange rate, halting an equity slump that had seen US shares post their worst ever four-day start to the year.
 

Meanwhile, gold prices fell 0.50% to $1,103.53 an ounce in Singapore. Prices are up 4% this week.