Gold reversed yesterday's gains and was seen trading lower as Federal Reserve Chairman Ben Bernanke failed to give any categorical hints on another round of quantitative easing, or "QE", in which a Central Bank buys assets from banks with electronically-generated cash to pump liquidity into the economy.
Investors were keen on further monetary easing in the form of QE to boost bullion. The US Central bank chief said that the Fed is prepared to take measures if the economic conditions worstens further. International gold was seen trading at $1,583 an ounce.
Gold on MCX for August delivery opened at Rs 29,275 per 10 grams, and was seen trading at Rs 29,256 per 10 grams lower by 0.11% at 2.30 pm IST.
Similarly, the metal for October contract delivery was seen trading at Rs 29,605 per 10 grams. While, silver for September delivery on MCX opened at Rs 52,801 per kg and was trading at Rs 52,760 per kgs lower by Rs 100.
Spot gold was seen at Rs 29,143 per 10 grams. Domestic bullion of 99.9 and 99.5% purity rose marginally and was at Rs 29,885 and Rs 29,685 per 10 grams, respectively.