Gold futures tumbled by more than 1 per cent in the domestic market on Friday tracking weakness in the yellow metal internationally as a recovery in the US dollar, a surge in equities and higher oil prices eroded the safe haven lure for the bullion.
Global stocks rallied on Friday as investors speculated that unprecedented easing measures from the ECB may help boost growth, easing jitters over the health of the global economy, while oil prices hit three-month highs after IEA predicted that the rout may have bottomed out as low prices impact Non-OPEC production, dimming the lure for gold as an alternative investment.
The Frankfurt-based European Central Bank (ECB) on Thursday slashed all of its key rates while expanding the scope of its bond buying program, but also signaled that key rates may not go further down. Read More -" MCX TIps "
Gold may trade on a cautious note today ahead of key policy meetings of Bank of Japan and US Federal Reserve this week as traders bet on major central banks to help support a flagging global economic recovery.
At the MCX, Gold futures for April 2016 contract closed at Rs 29,500 per 10 gram, down by 1.44 per cent after opening at Rs 29,850, against the previous closing price of Rs 29,931. It touched the intra-day low of Rs 29,462.
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