Gold drifted lower by Rs 51 to Rs 28,639 per 10 grams in futures trade today as participants scaled down their positions, largely in keeping with a weak trend overseas. At Multi Commodity Exchange, gold for delivery in August was trading lower by Rs 51, or 0.18 per cent, at Rs 28,639 per 10 grams in a business turnover of 92 lots.
Analysts said a weak trend prevailed in the overseas market where gold dropped in the wake of signals from the Federal Reserve for another increase in interest rates this year, eroding demand for the precious metal as a safe haven, which mainly weighed on gold futures here.
The precious metal often drops when rates rise as some investors back away from the metal because it does not pay the expected interest. Globally, gold fell 0.18 per cent to USD 1,252.40 an ounce in Singapore.