Gold prices extended losses, falling by 0.03 per cent on Friday at the domestic markets after the US Federal Reserve said that it will start phasing out a record aggressive easing program later this year, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus. Gold futures for August 2013 contract, at MCX, were trading at Rs. 26,861 per 10 grams, down by 0.03 per cent after opening at Rs. 26,886 against the previous closing price of Rs. 26,869. It touched the intra-day low of Rs. 26,808 till the trading. (At 11.43 AM today).
Bernanke said that the central bank will start reducing its USD 85 billion monthly bond buying plan later this year if the US economy continues to improve
Sentiment weakened further as a result of a decline in holdings in gold-backed exchange traded products (ETP). Holdings in the SPDR Gold Trust tumbled 351.3 tons in 2013 to 999.6 tons.
At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,294.4 per ounce, up by 0.64 per cent. It opened at US$1,277.6 against the previous closing price of US$1,286.2. It touched the intra-day high of US$1,297.4. (At 11.25 am IST).