Gold futures dip below Rs 26000 mark on global cues

NEW DELHI: Gold futures prices today dipped below Rs 26,000-level to trade at a 15-month low of Rs 25,270 per 10 grams as participants indulged in creating short positions after the metal had its biggest one-day drop since 1983 in global markets.

Gold prices, which had been plummeting since last week, fell by another Rs 364, or 1.41 per cent, to trade at a 15-month low of Rs 25,270 per 10 grams for delivery in June at the Multi Commodity Exchange. It clocked a turnover of 93 lots.

Similarly, the metal for delivery in far-month August shed Rs 266, or 1.02 per cent, to Rs 25,835 per 10 gm in 93 lots.

Market analysts said sustained weakness in the overseas markets where gold plunged over 9 per cent yesterday to its lowest price in two years, put pressure on the precious metal prices here.

Worries over Chinese growth and a possible sell-off by struggling Cyprus's central bank also pushed down the precious metal's prices in the futures trade here, they added.

Globally, gold plunged 9.35 per cent to USD 1,360.60 an ounce, the lowest since level since March 8 in New York yesterday. Prices have dropped 14 per cent in the previous two days.