Gold futures fell in the domestic market on Tuesday as investors and speculators bet that the US Federal Reserve may reduce its USD 85 billion monthly bond buying plan in the near-term, dimming the outlook for the precious metal, a hedge against the inflationary risk of monetary stimulus.
Caution prevailed ahead of the release of the US Federal Reserve minutes later this week which may provide further clues over when the Fed plans to start tapering QE.
However, the losses in the precious metal were limited by a record low rupee. The rupee fell to a fresh low of 64.11 against the US dollar, exerting upward pressure on domestic bullion prices.
Gold futures for October 2013 contract, at MCX, were trading at Rs. 30,951 per 10 grams, down by 0.69 per cent after opening at Rs. 31,175 against the previous closing price of Rs. 31,165. It touched an intra-day low of Rs 30,886. (At 11:06 AM).
Dion Global Solutions Ltd.