Gold and silver futures down on weak global cues

New Delhi: Gold prices fell 0.17 per cent to Rs 26,615 per 10 gram in futures trade on September 19, as participants reduced their positions largely with a weak trend overseas amidst subdued demand at domestic spot markets.

At the Multi Commodity Exchange, gold for delivery in October contracts eased by Rs 44, or 0.17 per cent, to Rs 26,615 per 10 gram in business turnover of 419 lots. Also, the metal for delivery in far-month December contracts shed Rs 40, or 0.15 per cent, to Rs 26,823 per 10 gram in 28 lots.

Market analysts said there is a weakening trend in the overseas markets where gold retreated to an eight-month low as the Federal Reserve raised its interest-rate forecasts, strengthening the dollar and damping demand for bullion as an alternative investment, weighed on precious metal at futures trade here.

Globally, gold fell by 0.21 per cent, to USD 1,222.20 an ounce in Singapore. It had dropped to USD 1,216.03, the lowest since January two in 18 September’s trade.

Amid a weakening trend overseas, silver prices fell 0.10 per cent to Rs 40,895 per kg in futures trade today as speculators trimmed positions. At the Multi Commodity Exchange, silver for delivery in far-month December traded lower by Rs 39, or 0.10 per cent, to Rs 40,895 per kg in business turnover of 512 lots.

In the international market, silver traded 0.32 per cent lower at USD 18.46 an ounce in Singapore. Market analysts said a weak trend in precious metals in the global markets as the Federal Reserve raised its interest-rate forecast, strengthening the dollar and damping demand a safe-haven, weighed on silver futures here.