Gold futures continue downward slide

Gold futures continue downward slide
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market.

Gold futures fell in the overseas market as a stronger dollar dimmed the appeal of gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.

Weakening physical demand from China, the world's biggest bullion consumer, also weighed on the precious metal. China's gold imports from Hong Kong fell to a 14-month low in April 2014, data showed.

Gold futures may fall today ahead of US jobless claims data which may show strength in the country's labour market, dimming the appeal of gold as a safe haven asset.

Gold futures for June 2014 contract, at MCX, closed at Rs. 26,834 per 10 grams, down by 0.46 per cent, after opening at Rs. 26,937 against the previous closing price of Rs 26,958. It touched an intra-day low of Rs 26,735.

Read more about: gold futures
Story first published: Thursday, May 29, 2014, 13:00 [IST]
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