Gold futures weaken on weak global cues

Posted By: Religare
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Gold futures weaken on weak global cues
Gold Futures on Tuesday closed on a negative note, moving away from three-week high, in the domestic market on the back of strengthening of the U.S. currency which reduced the investment appeal in the precious metals as an alternative investment.

Investors also started to book profit in gold to cover their losses in commodity and equity markets after China's growth eased in more than two years and German Chancellor Angela Merkel dashed hopes of a solution to the Euro zone's debt crisis at the forthcoming October 23, 2011 meet.

At the Multi Commodity Exchange (MCX), gold futures for December contract on Tuesday closed at Rs. 26,593 per 10 grams, down by 0.86%, after opening at Rs. 26,802 against the previous closing price of Rs. 26,824. It touched the intra-day low of Rs. 26,273 with a business volume of 62,344 lots.

At the Commodity Exchange (COMEX), gold futures for December 2011 contract on Tuesday closed at US$1,652.8 per ounce, down by $23.8, after opening at US$1,672.5 against the previous closing price of US$1,676.6. It touched the intra-day low of US$1,628.2 with a business volume of 173,631 lots.

However, gold futures may get support today on the back of safe haven demand as Moody's cut Spain's credit rating by two notches which raised uncertainty over whether European leaders would come up with a solution to the debt crisis at a meeting this weekend.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, were unchanged for past four trading session at 1,227.511 tons.

Read more about: gold, futures, mcx, europe, crisis
Story first published: Wednesday, October 19, 2011, 13:30 [IST]
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