Bullion Updates – Gold Drops 0.18 pct on Profit Booking

Gold prices fell by 0.28 per cent on Tuesday as participants booked profits at prevailing higher levels even as the precious metal glittered overseas. Traders attributed the fall in gold futures to profit-booking by traders at existing levels. However, a firm trend overseas on speculation that the US central bank will be slow to tighten policy further, bolstering the metal’s appeal as the dollar sagged.

At the MCX, Gold futures for June 2016 contract is trading at Rs 30,210 per 10 gram, down by 0.28 per cent after opening at Rs 30,285, against the previous closing price of Rs 30,294. It touched the intra-day low of Rs 30,180.

However, a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus increasing demand.

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