Gold futures fell in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid weak global cues as an improving US economy raised bets of the Federal Reserve continuing with the tapering of its QE program, clouding the outlook for the yellow metal, a hedge against the inflationary risk of monetary stimulus.
Investors were also cautious ahead of the US housing starts and industrial production data due today which may show a further strengthening of the US economic recovery.
Gold futures for June 2014 contract, at MCX, is trading at Rs. 28,422 per 10 grams, down by 0.53 per cent, after opening at Rs. 28,520, against the previous closing price of Rs 28,573. It touched an intra-day low of Rs 28,414. (At 10:47 AM).