Gold rallies ahead of Federal Reserve, ECB meet

Updated: Tuesday, July 31, 2012, 15:04 [IST]

Gold inched up on Tuesday ahead of a U.S. Federal Reserve's policy meet which is to be held later in the day. The policy ouctome may decide the direction of the bullion at least in the short term.

Any hints of monetary stimulus is by the Federal Reserve is likely to see a rally in gold. International gold was seen trading at $ 1,623 an ounce.

Seperately, The European Central Bank will hold its meeting on Thursday and investors are expecting some stimulus measures again after ECB chief, Mario Draghi hinted at a bullish outcome last week.

Spot gold scaled a high and was seen trading Rs 29,925 per 10 grams.

Meanwhile, gold for delivery in August at the Multi Commodity Exchange, was seen trading at Rs 29,879 per 10 grams up Rs 91 at 02.15 pm IST. It reached intraday high of Rs 29,930 per 10 grams.

And, the metal for October contract delivery was at Rs 30,267 per 10 grams up Rs 100.

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