Gold futures drop amid shrinking investment demand

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Gold futures drop amid shrinking investment demand
Gold futures fell in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as shrinking holdings in bullion-backed exchange traded products (ETP) signaled faltering investment demand for the yellow metal.

Holdings in the SPDR Gold Trust, the biggest gold-backed ETP shrank the most in over five weeks, declining 3.89 metric tons on Monday, data showed.

Investors are cautious ahead of the US non-farm payrolls data to be released later this week which may determine the US Fed's next move.

Gold futures for April 2014 contract, at MCX, is trading at Rs. 28,380 per 10 grams, down by 0.55 per cent, after opening at Rs. 28,610, against the previous closing price of Rs 28,536. It touched an intra-day low of Rs 28,350. (At 11:05 AM).

Dion Global Solutions Ltd.

Read more about: gold, gold futures, yellow metal
Story first published: Tuesday, April 1, 2014, 12:42 [IST]
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