Gold inches up ahead of Federal Reserve meet

Updated: Monday, December 10, 2012, 14:42 [IST]

Gold inched up on Monday on reports of slow improvement in the US job market and hopes for further monetary easing by the Federal Reserve, which will boost the demand for the yellow metal as safe-haven investment.

However, investors are cautious against taking any major move, as the direction still seems to be unpredictable ahead of two-day US Federal Reserve meet.

At 02.15 pm IST, the gold for February delivery on the Multi Commodity Exchange (MCX) was trading at Rs 31,420 per 10 grams, higher by Rs 94.

Domestically, gold of 99.9 and 99.5% was at Rs 31,660and Rs 31,460 per 10 grams, respectively.

MCX spot gold was seen at Rs 31,048 per 10 grams, while spot silver rose to Rs 61,011 per kg.

US spot gold was seen hovering at $1,710 an ounce.

While, silver for March 2013 delivery on MCX was seen trading at Rs 63,004 per kgs, up by Rs 422.

The appreciation in rupee may weigh on futures sentiment. As the rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

GoodReturns.in