Gold rallies on hopes of Fed tapering delay

Gold rallied on the MCX after international prices rose on hopes that there would be a delay in the Fed's stimulus measures. Gold for December delivery was trading higher by Rs 199 at Rs 29,679 on the MCX.

Silver prices also rallied on the MCX with Silver for December delivery trading higher by Rs 631 at Rs 48,826.

Gold and silver got some respite after falling in the past few weeks, following a solution to the US debt deal. However, hopes that the US Fed would not reduce its asset purchase programme saw gold prices rallying once again.

Spot gold in the international market was up 0.2 percent at $1,320 an ounce. The precious metal had reached $1,326 on Friday, its highest since Oct. 8.

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