Gold futures fall below Rs 26000/10 gram on MCX

Gold futures dropped below Rs 26,000 per 10 gram on MCX Wednesday, falling nearly 3 percent, tracking weakness in global commodity prices.

In international market, gold hit a near-three year low today, falling for a seventh session out of eight, as strong US economic data boosted stocks and supported the Federal Reserve's plan to scale back its bond purchases in the next few months.

Bullion prices have been sliding since Fed Chairman Ben Bernanke laid out a strategy last Wednesday to wind down the bank's USD 85 billion monthly bond purchases on the back of a recovering economy, reports Reuters.

Gold August futures fell by 3.79 percent to USD 1226.75 an ounce in international market.

At 14:50 hours IST, MCX GOLD August contract was trading at Rs 25849 per 10 gram, down Rs 710, or 2.67 percent. The GOLD rate touched an intraday high of Rs 26535 and an intraday low of Rs 25758. So far 35082 contracts have been traded. GOLD prices have moved down Rs 6378, or 19.79 percent in the August series so far.

MCX GOLD October contract was trading at Rs 25979 down Rs 716, or 2.68 percent. The GOLD rate touched an intraday high of Rs 26650 and an intraday low of Rs 25900. So far 1239 contracts have been traded. GOLD prices have moved down Rs 5871, or 18.43 percent in the October series so far.

MCX GOLD December contract was trading at Rs 26111 down Rs 783, or 2.91 percent. The GOLD rate touched an intraday high of Rs 26460 and an intraday low of Rs 26088. So far 87 contracts have been traded. GOLD prices have moved down Rs 4829, or 15.61 percent in the December series so far.