Gold futures weaken 0.1% on global cues

Gold prices fell by Rs 21% to Rs 25,027 per 10 grams in futures trade today as participants trimmed positions, tracking a weak trend overseas.

At the Multi Commodity Exchange, gold for delivery in far-month February 2016 declined by Rs 21, or 0.08% to Rs 25,027 per ten grams in business turnover of 2,004 lots.

Also, the metal for delivery in December contracts traded lower by Rs 5, or 0.02% to Rs 24,835 per ten grams in 20 lots.

Analysts said a weak trend in the overseas markets where gold sank to the lowest level in more than five years after Federal Reserve Chair Janet Yellen signaled that the US economy looks strong enough for an interest rate hike this month, eroded demand for the precious metal, kept pressure on gold futures here.

Globally, gold lost 0.7% to $1,046.44 an ounce, the lowest since February 2010, in Singapore.

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