Gold futures drop on lacklustre overseas trade

MUMBAI: The near-month gold futures contract on commodity bourse MCX dropped Rs 10 to Rs 28,720 at noon, reflecting lacklustre trade overseas where spot gold fell 34 cents at $1,309.85 an ounce (32 gm).

“Gold is likely to trade between Rs 28,500 and 28,900 over the short term,” said Sudheesh Nambiath, senior analyst, GFMS Thomson Reuters, a precious metals analytical company. “I see demand picking up in earnest from this month end,” he added.

Easing tensions in the Middle East and Ukraine have pulled down the metal from a three-week high of $1,322.76 on Friday.