Gold futures down over 1% on weak global cues, higher rupee

MUMBAI-INDIA (Sept 10)  futures prices today fell by 1.06% to Rs 31,291 per 10 grams as speculators offloaded their positions in tandem with a weak global trend amid strengthening rupee.

At the Multi Commodity Exchange, gold prices for delivery in far-month December fell by Rs 334, or 1.06%, to Rs 31,291 per 10 grams in business turnover of 92 lots.

Similarly, metal prices for delivery in October declined by Rs 327, or 1.04%, to Rs 31,213 per ten grams in 1,269 lots.

Market analysts said the fall in gold futures was mostly attributed to a weak trend overseas on speculation that the US Federal Reserve will start to pare stimulus from next week, and as a bid to avert military action in Syria eroded haven demand.

Besides, strengthening rupee, making imports of dollar-quoted precious metal cheaper, also helped gold to trade lower, they said.

Meanwhile, gold prices fell 0.8% to $1,375.81 an ounce in Singapore.