Zee Media Bureau
Gold prices dipped below Rs 27,000 per 10 grams in futures market Tuesday as speculators offloaded their positions in tandem with weak trend overseas.
At the Multi Commodity Exchange (MCX), gold for delivery February fell by Rs 279 to Rs 27,041 per 10 grams after moving in range of Rs 26,986- Rs 27,225.
Gold in overseas markets, which normally set price trend on the domestic front, lost 2.5 percent on Monday, giving up all of last week`s gains as oil prices tumbled to fresh 5-1/2-year lows, cutting`s gold`s draw as a hedge against oil-fueled inflation.
Monday`s drop was the biggest for spot gold in a single day since Dec 2, 2013.
US gold for delivery in February slipped 1 percent to USD 1,195.30 an ounce, stretching losses to a fifth session.
Apart from oil, investors are eyeing the Federal Reserve`s two-day policy meeting which kicks off today for clues on the timing of an increase in US interest rates.
The US economy has strengthened and jobs have been created at a faster-than-expected clip since the Fed`s last meeting in October, when it reiterated that benchmark rates were unlikely to rise for a "considerable time".
With agency inputs
