Gold futures were trading a tad lower in the domestic market on Wednesday on fears that the Federal Reserve may start tapering QE in the near-term.
A fourth straight rise in US retail sales triggered concerns that the Fed is close to tapering record easing, dimming the appeal of the yellow metal, a hedge against the inflationary risk of monetary stimulus . US retail sales rose 0.2 per cent in July 2013 from the previous month when they advanced 0.6 per cent, the Commerce Department said.
Meanwhile, an increase in import duty on the precious metal to 10 per cent from 8 per cent may curb gold demand in India, the world's biggest bullion consuming nation.
Gold futures for October 2013 contract, at MCX, were trading at Rs. 28,869 per 10 grams, down by 0.05 per cent after opening at Rs. 28,900, against the previous closing price of Rs 28,882. It touched an intra-day low of Rs 28,806. (At 11:27 AM).
Dion Global Solutions Ltd.