Fed stimulus taper fears drive down Gold futures

Fed stimulus taper fears drive down Gold futures
Gold futures fell in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid heightened speculation that the US Federal Reserve may start tapering stimulus from December.

Atlanta Fed President Dennis Lockhart warned that the Fed may well reduce its USD 85 billion monthly bond buying program next month.

Gold, which tends to benefit from ultra-loose-monetary policies from global central banks, has been severely hit by Fed stimulus taper fears, given that the precious metal is a hedge against the inflationary risk of monetary stimulus.

Gold futures for December 2013 contract, at MCX, were trading at Rs. 30,170 per 10 grams, down by 0.79 per cent after opening at Rs. 30,300, against the previous closing price of Rs 30,411. It touched an intra-day low of Rs 30,152. (At 10:51 AM).

Dion Global Solutions Ltd.

Story first published: Wednesday, November 13, 2013, 12:53 [IST]
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