Gold prices softened by 0.4 per cent to Rs 29,736 per 10 gram at the futures trade as traders trimmed their bets amid weak global cues.
At the Multi Commodity Exchange, gold for delivery in October declined by Rs 120 or 0.4 per cent to Rs 29,736 per ten gram in a business turnover of 1,016 lots. Similarly, the metal for delivery in far-month December was trading lower by Rs 119 or 0.40 per cent at Rs 29,870 per ten gram in 90 lots.
Analysts attributed the fall in gold futures to a weak trend in the precious metals in overseas markets as a firm dollar reduced the demand for the precious metals as a safe heaven investment. Dollar remains firm due to prospects of monetary policy tightening in the US ahead of the Federal Reserve’s two-day meeting starting on Tuesday.
Meanwhile, gold fell 0.16 per cent to $1,317.10 an ounce in Singapore.