Gold down on weak overseas trend

Amid a weakening global trend, gold futures traded Rs 51 down at Rs 26,294 per 10 gram on Tuesday as speculators reduced their positions.

Gold for delivery in October dropped by Rs 51 or 0.19% to Rs 26,294 per 10 gram in a business turnover of 443 lots at the Multi Commodity Exchange.

In a similar fashion, the metal for delivery in far-month December shed Rs 49 or 0.18% to Rs 26,487 per 10 gram in 10 lots.

Market analysts said the fall in gold futures was mostly in tune with a weak trend overseas amid speculation that US interest rates may still increase before the year-end as Federal Reserve officials sought to ease concern over the health of the economy, eroding haven demand.

Meanwhile, gold prices fell by 0.57% to $1,133.40 an ounce in New York on Monday.