Gold futures slump on import duty hike, weak global cues

Gold futures prices today fell by 0.39 per cent to Rs 27,771 per 10 grams as participants indulged in reducing exposures, after the government raised import duty on the metal to 8 per cent amid a weak trend overseas.

Analysts said sentiments turned weak after the government last night hiked the import duty on the metal to 8 per cent, up by 2 per cent, in a bid to rein in demand.

The hike is aimed at curbing import of gold which is mainly responsible for rise in CAD impacting on the country's foreign exchange reserves as well as the rupee value.

Besides, a weakening trend in the global market also weighed on the metal prices at futures trade, they said.    At the Multi Commodity Exchange, gold for delivery in far-month October, fell by Rs 110, or 0.39 per cent, to trade at Rs 27,771 per 10 grams in a turnover of 182 lots.
Similarly, the metal for delivery in August fell by Rs 94, or 0.34 per cent, to Rs 27,590 per 10 grams in 5,298 lots.

Globally, gold lost as much as 0.34 per cent to USD 1,398 an ounce in Singapore.