Gold market trends

Gold prices fell by Rs 70 to Rs 20,595 per ten gram at the futures trading on Wednesday, as speculators indulged in booking profits at prevailing higher levels driven by a fall in spot market demand.

Weakening trend in the overseas market also influenced the trading sentiment here.

At the Multi Commodity Exchange counter, February contract fell by Rs 70 or 0.34 per cent to Rs 20,595 per ten gram in single lot. In a similar fashion, the yellow metal for delivery in December declined by Rs 67 or 0.33 per cent to Rs 20,445 per ten gra m in a business turnover of three lots.

Analysts said that apart from profit-booking by speculators at existing higher levels, fall in demand in the spot market led to the fall in gold prices at the futures trade. They said weakening trend in the Asian region further fuelled the downtrend.

Meanwhile, gold declined by $1.50 to $1,375.00 an ounce in the Asian region.

source