Gold futures decline on global cues

Gold prices declined by 0.63 per cent to Rs 23,372 per 10 grams in futures trade on Monday as speculators reduced their positions amid a weak global trend.

At the Multi Commodity Exchange, gold for delivery in far-month October traded Rs 148, or 0.63 per cent, lower at Rs 23,372 per 10 grams, with a business turnover of 1,405 lots.

The metal for August delivery also lost Rs 136, or 0.59 per cent, to Rs 23,030 per 10 grams, with a trade volume of 289 lots. It had ended 0.09 per cent lower at Rs 23,166 per 10 grams in the previous trading session.

Analysts said the fall in gold futures was mostly due to a weakening global trend after US President Barack Obama announced that US lawmakers have reached an agreement to increase the nation's debt limit and cut the federal deficit, averting a default on Tuesday and reducing demand for precious metals.

In addition, a strong rupee put pressure on the dollar-quoted yellow metal.

Meanwhile, gold traded lower by 1.3 per cent to $1,607.45 an ounce in Asian region. It had reached an all-time high of $1,632.80 an ounce on July 29.