Gold futures loses sheen on global cues, weak spot demand

Gold futures prices fell 0.11 per cent to Rs 18,871 per ten gram on Tuesday, largely in tandem with weak trend overseas amid slackened demand at spot markets.

At the Multi Commodity Exchange platform, gold for delivery in December fell by Rs 20, or 0.11 per cent, to Rs 18,871 per ten gram, with a business turnover of 988 lots.

The metal for delivery in February fell Rs 19, or 0.09 per cent, to Rs 20,039 per ten gram, with a business turnover of 12 lots, while delivery for April shed Rs 5, or 0.02 per cent, to Rs 20,194 per ten gram, clocking in a business turnover of just one lot.

Market analysts said weakening trend in overseas markets, as strong dollar reduced its appeal as an alternative investment and fall in demand at prevailing levels in domestic markets, mainly weighed on the precious metal futures prices.

Globally, gold fell by USD 4.50, or 0.33 per cent, to USD 1,365.10 an ounce in the Asian region.