Gold prices fell by 0.06 per cent on Tuesday as a strong dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. Gold futures for October 2015 contract, at MCX, were trading at Rs. 26,330 per 10 grams, down by 0.06 per cent after opening at Rs. 26,319 against the previous closing price of Rs. 26,345. It touched the intra-day low of Rs. 26,331 till the trading. (At 11.55 AM today).
Prices also fell as investors continued to revise their outlook on when the Federal Reserve would tighten monetary policy.