Gold futures hit lower circuit, drops 6 pc on global cues

New Delhi, Apr 15. Gold futures prices today plunged by 6 per cent to hit lower circuit at Rs 26,250 per 10 gm, a level last seen in September 2011 on sustained offloading by speculators after it dipped to over two-year low overseas. At the Multi Commodity Exchange, gold for delivery in June fell sharply by Rs 1,675, or 6 per cent, to hit lower circuit at Rs 26,250 per 10 gm, the lowest level since September 2011. It recorded a business turnover of 62,884 lots. Similarly, gold prices for delivery in August declined by Rs 1,700, or 6 per cent, to hit a lower circuit at Rs 26,643 per 10 gm, in a business volume of 2,910 lots. At the Delhi bullion market, gold prices fell by Rs 750 to close at over 15-month low of Rs 27,600 per 10 gm today. Analysts attributed persistent fall in gold prices at futures trade to speculative selling by participants after the yellow metal dropped to a two-year low on fears of central bank sales and less monetary stimulus, while holdings on global exchange-traded funds hit their lowest in more than a year. "Meltdown in gold prices in the global market, where it dropped to a two-year low mainly weighed on the precious metal prices at futures trade here," said a Delhi-based analyst Shree Bhagwan Garg. A weakening trend on the domestic spot markets as a falling rupee hit buying activity also weighed on the bullion prices, they said. Meanwhile, gold dipped below USD 1,400 mark by dropping USD 90.70, or 6.14 per cent, to USD 1,386.30 an ounce in London today.