Gold prices drifted lower by 0.27 per cent to Rs 28,589 per 10 grams in futures trade today as participants cut their bets amid a weak global trend. Profit-booking by speculators also weighed on gold prices. At the Multi Commodity Exchange, gold prices for delivery in February month declined by Rs 78, or 0.27 per cent, to Rs 28,589 per 10 grams in business turnover of 264 lots. Likewise, the metal for delivery in far-month April contracts was trading lower by Rs 77, or 0.26 per cent, to Rs 28,652 per 10 grams in modest one lot. Analysts attributed the fall in gold prices at futures trade to a weak trend overseas where gold is heading for the biggest weekly drop since May as investors anticipate higher US interest rates, and progress on tax reform buoys the dollar, eroding safe-haven appeal of the precious metal. Meanwhile, gold for immediate delivery has slumped 2.5 per cent this week, the most since the five days ended May 5. Gold fell 1.27 per cent to $1,246.80 an ounce in New York yesterday.
Taking weak cues from overseas markets, silver prices slipped below Rs 37,000 per kg mark in futures trade today as participants cut down bets. At the Multi Commodity Exchange, silver for delivery in March fell by Rs 62, or 0.17 per cent, to Rs 36,974 per kg in a business turnover of 1,661 lots. Similarly, the white metal for delivery in May edged down by Rs 66, or 0.18 per cent, to Rs 37,480 per kg in 17 lots. Analysts said offloading of positions by participants in line with a weak global trend as investors anticipate higher US interest rates, and progress on tax reform buoys the dollar, diminishing safe-haven appeal of the precious metals, mainly led to the fall in silver prices at futures trade.
Globally, silver shed 1.41 per cent to USD 15.70 an ounce in New York yesterday.