Gold futures drop Rs 148 on weak global cues

New Delhi: Amid a weakening global trend, gold futures traded lower by Rs 148 at Rs 28,004 per 10 grams today as speculators trimmed their positions.

Gold for delivery in far-month June dropped Rs 148, or 0.53 per cent, to Rs 28,004 per 10 grams, in a business turnover of 23 lots at the Multi Commodity Exchange.

In a similar fashion, the metal for delivery in April was trading down Rs 132, or 0.47 per cent, to Rs 27,944 per 10 grams in 710 lots.

Market analysts said the fall in gold futures was mostly in tune with a weak trend overseas where the precious metal dropped as the dollar gathered strength on the prospect of a US interest rate hike, eroding demand for the precious metal as a safe-haven.

Meanwhile, gold prices fell 0.42 per cent to USD 1,198.60 an ounce in New York yesterday.