Gold futures contract prices on MCX were trading with lower on Monday. At the Multi Commodity Exchange, gold futures for August delivery lowered by Rs 131, or 0.48%, to Rs 27,426 per 10 grams. Gold price hit an intraday high of Rs 27511 and an intraday low of Rs 27416. So far 1465 contracts have been traded.
In the spot market, gold fell Rs 100 to Rs 28,200 per 10 gm.
KheloMCX Commodity Analysts said a weak tendency on foreign markets as the prospects of higher borrowing costs in the U.S. fortified the dollar, which reduces the demand for the precious metal, put pressure on the prices of gold in futures trade here. And Trading volumes are fewer than traders are expecting a cut in import duty on gold in the next budget.
The precious metals expanded their rally for the fifth week running, but the momentum is undoubtedly slowing down now that U.S. economic data it has become better. Equity markets continues expand its rally and the rebirth of a strong dollar is beginning to weigh on precious metals forward, they added.
While, Instead of, U.S. gold for August delivery lost 0.51%, or $ 6.70, to trade at $ 1314.60 a troy ounce during early European morning hours. Prices are kept up in a range of $ 1313.30 and $ 1321.70 an ounce. The prices of gold were likely to find supportive at $ 1305.40, the low of June 25 and resistance at $ 1,334.90, the high of July 1.
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