Gold futures prices today fell 0.39 per cent to Rs 27,771 per 10 grams as participants indulged in reducing exposures, after the Government raised its import duty to 8 per cent amid a weak trend overseas.
Analysts said that the sentiment turned weak after the Government had last night hiked the import duty on the metal to 8 per cent, up by 2 per cent, in a bid to rein in demand.
The hike is aimed at curbing gold imports which is mainly responsible for the rise in current account deficit impacting on the country’s foreign exchange reserves as well as the rupee value.
Besides, a weakening trend in the global market also weighed on the metal prices at the futures trade, they said.
On the Multi Commodity Exchange, gold for delivery in far-month October fell Rs 110 or 0.39 per cent to trade at Rs 27,771 per 10 grams in a turnover of 182 lots. Similarly, the metal for delivery in August fell Rs 94 or 0.34 per cent to Rs 27,590 per 10 grams in 5,298 lots.
Globally, the yellow metal lost as much as 0.34 per cent to $1,398 an ounce in Singapore.