Gold futures remain higher on Fed stimulus hopes

Gold futures remain higher on Fed stimulus hopes
Gold futures rose in the domestic market on Wednesday as investors and speculators bet that the US Federal Reserve may refrain from tapering its record QE program this year to support the world's biggest economy, lifting the demand outlook for the bullion, which is a hedge against the inflationary risk of monetary stimulus.

American employers added fewer jobs last month, signaling a faltering labour market recovery, boosting the case for QE. US non-farm payrolls gained 148,000 in September, compared to 193,000 in the previous month.

Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, on Tuesday rose for the first time since September 19, up 0.8 per cent to 878.32 metric tons.

Gold futures for December 2013 contract, at MCX, were trading at Rs. 30,176 per 10 grams, up by 0.18 per cent after opening at Rs. 30,078, against the previous closing price of Rs 30,121. It touched an intra-day high of Rs 30,228. (At 11:53 AM).

Dion Global Solutions Ltd.

Story first published: Wednesday, October 23, 2013, 12:54 [IST]
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