Gold futures fell 1.87 per cent to Rs 27,120 per 10 grams today, snapping a three-session winning streak amid profit-booking by speculators and a declining trend in the overseas markets.
At the Multi Commodity Exchange, the most-actively traded contract for October delivery fell Rs 518 or 1.87 per cent to Rs 27,120 per 10 grams with a business turnover of 1,926 lots. The metal had closed 2.7 per cent higher at Rs 27,638 per 10 grams in the previous session.
Similarly, December contract fell Rs 487 or 1.75 per cent to Rs 27,401 per 10 grams.
Analysts attributed the fall in gold futures to profit-booking by speculators at prevailing higher levels and a weak trend overseas, where the prices drifted southward after the US Federal Reserve Chairman, Mr Ben Bernanke, said that the American economy’s growth will recover in the long-term, raising speculation that the central bank may not announce a stimulus, which eroded the appeal of the precious metal.
Globally, gold was trading 0.3 per cent lower at $1,822.55 an ounce in Singapore. The metal has lost as much as 11 per cent from its all-time high of $1,913.50 per ounce on August 23.