Gold futures fell down during afternoon trade in the domestic market on Friday as investors & speculators exited their positions in the precious metal as desired for safe-haven faded on strong US dollar & equities near record highs lured away investors seeking higher returns.
The demand for the metal as an alternative asset reduced by a rally that pushed the Dow Jones Industrial Average above 20,000 for the 1st first time, along with the stronger dollar & as Treasury yields close to the highest this year.
Moreover, solid corporate earnings & investor optimism on Trump’s policies aimed at paring regulation, cutting taxes and keeping jobs within the US borders curbed desired for haven assets such as bullion.
At the MCX, gold futures for February 2017 contract is trading at Rs 28165/10 grams, downward by 0.78 %, after opening at Rs 28250, against a last closing of Rs 28385. It touched the intra-day low of Rs 28125.