Gold futures rose in the domestic market on Wednesday as weak US economic data raised speculation that the US Federal Reserve may maintain its USD 85 billion monthly bond buying program next week, bolstering the appeal of the precious metal, which is a hedge against the inflationary risk of monetary stimulus.
A slump in US job openings to the lowest level in six months and a drop in small business confidence clouded the outlook for the world's biggest economy, boosting the case for the Fed to stay put on monetary policy. The number of positions waiting to be filled in the US fell by 180,000 to 3.69 million in July.
However, easing concerns over the Syria conflict following US President Barack Obama's remarks asking the Congress to delay a vote on launching military action against Syria dimmed the safe haven appeal of the yellow metal, trimming gains in gold futures.
Meanwhile, India's gold imports slumped by 95 per cent to 2.5 tonne last month as the government curbs dampened demand. Gold futures for October 2013 contract, at MCX, were trading at Rs. 31,030 per 10 grams, up by 0.90 per cent after opening at Rs. 30,911 against the previous closing price of Rs 30,753. It touched an intra-day high of Rs 31,085. (At 10:36 AM).
Dion Global Solutions Ltd.