Gold, silver shed gains on MCX; rupee weighs

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Gold, silver shed gains on MCX; rupee weighs
India gold futures reversed gains witnessed in the previous sessions and was seen trading lower on the Multi Commodity Exchange as an appreciation in the rupee weighed on gold sentiment.

Gold futures at the MCX, for October 2012 contract, was trading at Rs 31,220 per 10 gram, lower by 0.39%. The metal opened at Rs 31,311, against a previous close of Rs 31,342.

MCX silver futures slipped by Rs 49 per kg, and was trading at Rs 58,960 per kg. Spot silver on MCX was trading at Rs 58,881 per kg.

Spot bullion on the MCX was seen lower at Rs 31,123 per 10 grams, while Delhi spot gold of 99.9% and 99.5% purity was at Rs 31,610 and Rs 31,410 per 10 grams, respectively.

Overseas gold on Monday rose on speculation that the US Federal Reserve may undertake further monetary easing measures in the near term to boost the sagging economy. Monetary easing will lift the demand for the yellow metal which is considered a hedge against inflation. International gold was seen trading around US$ 1,689 an ounce.

On Friday, Fed Chairman Ben Bernanke at Jackson Hole hinted at another round of monetary easing in the near-term, to strengthen the economy.

However, sentiment was affected as demand declined for the precious metal as the recent spike in the prices keept consumers away from taking fresh positions.

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