Gold futures falling on low demand

Gold prices on Tuesday declined by Rs 555 to Rs 71,047 per 10 grams in futures trade as speculators reduced their positions. On the MCX, gold contracts for June delivery traded lower Rs 555 at Rs 71,047 per 10 grams in a business turnover of 19,243 lots.

Analysts attributed the fall in gold prices to weak global cues and profit booking at higher level. Globally, gold was trading 1.27 per cent lower at USD 2,327.80 per ounce in New York.

According to Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, "Spot gold declined as the precious metal remains in consolidating mode ahead of the key event of two-day Federal Open Market Committee (FOMC) meeting and data releases like US manufacturing and services PMIs and non-farm payroll report."