Gold edged higher on Wednesday ahead of European Central Bank (ECB) and Bank of England (BoE) meet which is to be held tomorrow. Gold rose on hopes of further monetary easing from central banks to support their respective teetering economies.
On the Multi Commodity Exchange, gold futures for August 2012 contract, were trading at Rs 29,555 per 10 grams, up by 0.28% after opening at Rs 29,510 against the previous closing price of Rs 29,473. It touched the intra-day high of Rs. 29,625 till the trading at 2.20 pm IST.
International gold was also hovering at US$1,615 an ounce. Sentiment boosted further as the European Central Bank is expected slash interest rates due to recent sluggish economic data which will help the gold price to move in forward direction. Bank of England is also expected to increase asset purchase by as much as 50 billion pounds.
Bank in India, spot gold of 99.9 and 99.5% purity was seen at Rs 30,050 and Rs 29,850 per 10 grams, respectively.