Gold futures subdued as Fed tapering talk gathers steam

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Gold futures subdued as Fed tapering talk gathers steam
Gold futures fell in the domestic market on Friday as investors and speculators were cautious ahead of the two-day US Federal Reserve policy meet slated next week. Speculation is rife that the central bank may slow its USD 85 billion monthly bond buying program as the job market recovery in the world's biggest economy gathers steam.

Unemployment claims in the US fell to the lowest level since April 2006, down by 31,000 to 292,000 last week, boosting the case for the Fed to taper record stimulus. A reduction in stimulus may hurt gold, which is a hedge against the inflationary risk of monetary stimulus.

Investors continue to eye the outcome of talks between US and Russian officials as they discuss a plan for Syria to surrender chemical weapons.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 30,015 per 10 grams, down by 0.11 per cent after opening at Rs. 30,091, against the previous closing price of Rs 30,047. It touched an intra-day low of Rs 29,980. (At 10:41 AM).

Dion Global Solutions Ltd.

Story first published: Friday, September 13, 2013, 12:20 [IST]
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