NEW DELHI: A fall in demand by local jewellers at the spot market amid rupee's rise against the US dollar dragged gold prices lower in futures trade on Thursday despite positive global cues.

"Stronger Indian currency is putting pressure on gold prices even as global cues are positive," said Kunal Shah, Head of Commodities Research at Nirmal Bang.

The rupee climbed 15 paise against the US dollar today. A strong rupee against the dollar brings gold prices down and spurs consumption.

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In global markets, gold traded near its highest in almost two weeks as investors fretted about the global economy and trade tensions, and as the European Central Bank and the US Federal Reserve showed signs that monetary policy will remain accommodative, Reuters reported.

Silver prices also cracked on a slump in demand by industrial units and coin makers.

The MCX Gold was trading at Rs 32,143 per 10 grams, down by Rs 138, while MCX Silver was trading Rs 201 lower at Rs 37,660 a kilo around 10:50 am.