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Gold prices on Wednesday fell by Rs 444 to Rs 39,800 per 10 gram in futures trade as participants cut down their positions tracking a weak trend overseas.

On the Multi Commodity Exchange, gold prices for April delivery fell by Rs 444, or 1.1 per cent, to Rs 39,800 per 10 gram in a business turnover of 4,662 lots.

The yellow metal for June delivery declined by Rs 606, or 1.5 per cent, to Rs 39,844 per 10 gram in 403 lots.

Analysts said subdued overseas cues mainly influenced sentiments here.

Globally, gold was trading 0.78 per cent lower at USD 1,513.90 per ounce in New York.

Moreover, private lender Karur Vysya Bank (KVB) on Wednesday announced its entry into the bullion business.

The bank in a statement said that the gems and jewellery business is an important part of India's economy and KVB is now in a position to enhance its support to this important industry.

As a trial base, the bank delivered its first shipment to clients in Chennai and Coimbatore recently. It is now in the process of ramping up the business to fully extend support to its existing set of customers across the nation, it said.

The bank mentioned that the new business has been launched after ensuring the highest quality risk management.

The gems and jewellery business contributes about 7 per cent to the country's gross domestic product (GDP) and 15 per cent to total merchandise exports. India is the second largest consumer of gold in the world. Demand for gold in the country stood at about 700 tonnes during 2019, the bank said.

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Free Press Journal