Gold declines ahead of Federal Reserve meet

Business

oi-Sneha

By Sneha B K

Published: Tuesday, January 29, 2013, 14:58 [IST]

MCX gold declined in today's trade ahead of a Federal Reserve two-day policy meet which will start later today. International gold edged up after losing in previous sessions as physical buying picked up as prices fell to 21/2 week low.

However, investors are cautious against taking any major move, as the direction still seems to be unpredictable ahead of Fed meet. Optimism about a stable recovery in the economy is driving investors away from safe-haven assets.

US spot gold was seen hovering at $1,663 an ounce.

At 02.20 pm IST, the gold for February delivery on the Multi Commodity Exchange (MCX) was trading at Rs 30,279.00 per 10 grams lower Rs 59.

While, silver for May delivery on MCX was seen trading at Rs 57,835 per kgs higher Rs 73.

Gold is likely to witness pressure if the rupee appreciates against dollar as rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

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