India gold trading flat: EU meeting eyed

Business

oi-Monika

By Monika Nihalani

Published: Tuesday, November 29, 2011, 13:48 [IST]

Gold in India stood steady on Tuesday ahead of EU meet which is scheduled later in a day. Investors remained sidelined on the hopes that European Finance Ministers may come out with some decision to tackle the nation's debt crisis.

Gold may move up marginally if the Finance Ministers comes out with some possible outcome but analysts said the near-term outlook of the metal remain vulnerable as the recent trend of gold is in line with the riskier assets.

Gold which used to be a hedge against economic instability has lost its safe-haven appeal in recent times due to current volatility in currencies.

Dollar has moved up significantly against the basket of currencies, which has made gold expensive for rest of the nations. Investors are shying away from the yellow metal due to its high-priced tag.

Meanwhile, International spot gold was trading above $1,700-level at US$ 1,707 an ounce.

While, on domestic front, MCX gold futures for December delivery contract remained flat at Rs 28,678 - Rs 28,700 per 10 grams.

Domestic gold prices in India have edged up again above Rs 29,000 per 10 grams, the price of 24 carat gold rose to Rs 29,100 per 10 grams, while 22 carat gold rallied to Rs 27,210 per 10 grams.

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