Gold price falls by Rs 195 to Rs 29,511 per 10 grams

New Delhi: Gold futures fell by Rs 195 to Rs 29,511 per 10 grams in early trade Tuesday as speculators trimmed positions amid weakening global trend.

At the Multi Commodity Exchange (MCX), gold for delivery in December dropped by Rs 195, or 0.66 percent, to Rs 29,511 per 10 grams.

Market analysts said that the fall in gold futures was mostly in tune with a weak trend overseas where the precious metal slid to a seven-week low after strong US manufacturing data strengthened the dollar and eroded appeal of the precious metal as a safe haven.

US manufacturing activity rose to its highest level in September in 13 years, according to data from the Institute for Supply Management. The report showed strength across virtually every manufacturing segment, although some companies expressed fears that US hurricanes could lead to higher supply costs.

Globally, spot gold was down 0.1 percent at USD 1,269.50 an ounce, after earlier touching its lowest since mid- August at USD 1,268.60 per ounce. US gold futures for December delivery shed 0.3 percent to USD 1,272.50 per ounce.