Gold futures falls on stronger dollar

Gold futures came under pressure on Monday as a spike in the U.S. dollar prompted investors to close off bets in the yellow metal.

The Indian rupee and euro weakened against the dollar as worries on European debt resurfaced with rising bond yields in Spain and Italy. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Some investors also sold the metal to cover losses in other markets on speculation that the European debt crisis is worsening.

At the Multi Commodity Exchange (MCX), gold for immediate delivery touched a low at Rs 28,441 per 10 grams, and was trading at Rs 28,504 per 10 grams lower Rs 83 at 3.00 pm IST.

Silver futures for May delivery was seen lower Rs 188 at Rs 55,621 per kgs.

Domestically, gold of 99.9 and 99.5 per cent purity rose to Rs 27,790 and Rs 27,650 per 10 grams, respectively.

GoodReturns.in