MCX Bullions tips: Gold futures sank more than 1.3 % in the national market on Wednesday as investors and speculators exited positions in the bullions tracking a weak trend in the overseas market as stronger than expected US labour market data bolstered the case for the US Federal Reserve to begin tightening interest rates for the first time since 2006, souring the lure for Gold as a store of value.

Job openings in the US soared to a record in July, signaling a strengthening labour market recovery in the world’s largest economy that should support the case for the Fed to initiate a lift-off in interest rates soon, making traders uneasy ahead of the Fed’s two-day policy meet on September 16-17 as the world’s top central bank prepares to exit the era of near zero interest rates in the US.

The number of positions waiting to be filled in the US soared by 430,000, the biggest advance since April 2010 to a record 5.75 million in July 2015.

A broadly stronger dollar also dimmed the appeal of Gold as an alternative asset, adding to the yellow metal’s woes. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.

Gold may rebound today as a renewed global stock sell-off amid tepid China inflation data bolsters safe haven demand for the bullion.

At the MCX, Gold futures for October 2015 contract closed at Rs 26,057 per 10 gram, down by 1.39 per cent after opening at Rs 26,449, against the previous closing price of Rs 26,424. It touched the intra-day low of Rs 25,984.