MCX GOLD TIPS: Gold futures shed more than 2 per cent in the domestic market on Monday, tanking by the most in nearly seven months internationally, as resurgence in global equities cut the precious metal’s appeal as a safe haven asset.

Stocks from Asia to Europe roared on Monday, with markets in Japan notching up their biggest rally in seven years amidst value buying as shares became oversold after last week’s bloodbath.

Worries over the global economic recovery eased as China’s central bank governor expressed faith in the country’s economy, while an annualized contraction of 1.4 per cent in Japan’s economy in Q4 bolstered speculation of a stimulus boost by the Bank of Japan and the European Central Bank (ECB) chief Mario Draghi reiterated the central bank’s willingness to act if continued market turbulence hinders price stability.

Meanwhile a stronger dollar eroded the demand for Gold as an alternative investment. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming bullion demand.

Gold may extend losses today as global stocks consolidate a rebound.

At the MCX, Gold futures for April 2016 contract closed at Rs 28,690 per 10 gram, down by 2.4 per cent after opening at Rs 29,302, against the previous closing price of Rs 29,386. It touched the intra-day low of Rs 28,613.