Gold futures drop Rs 127 on weak global cues, profit-booking

Amid a weakening global trend and profit-booking by speculators, gold futures traded lower by Rs 127 at Rs 25,973 per 10 gram on January 8. Gold for delivery in February contract eased Rs 127, or 0.49 per cent 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 per cent 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 per cent to USD 1,103.53 an ounce in Singapore. Prices are up 4 per cent this week.