Gold futures were trading lower 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 safe haven demand for the yellow metal ebbed following the election of a new president in Ukraine, raising hopes of peace and stability in the country.
A stronger dollar against the euro also dimmed the appeal of gold as an alternative asset. Stronger greenback makes gold cheaper for those holding euro, thus dimming demand.
Gold futures for June 2014 contract, at MCX, is trading at Rs. 27,405 per 10 grams, down by 0.28 per cent, after opening at Rs. 27,525, against the previous closing price of Rs 27,483. It touched an intra-day high of Rs 27,525. (At 11:24 AM).