Gold trades flat ahead of FOMC meet

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, December 17, 2013, 12:23 [IST]

Gold was trading flat ahead of the Federal Open Market Committee (FOMC) meet, which will decide whether the Fed would taper its QE3 programme. Read more on QE3 here

Should the Fed decide to taper its QE3 programme, gold could head lower. QE3 programme or asset purchase programme ensures abundant liquidity in the global economy which over the last few years has found its way into assets like gold.

Gold for February delivery on the MCX was last trading at Rs 28,871, marginall up by Rs 40.

This year, however, investors have preferred equities to gold as economic recovery around the globe has gained momentum. This has ensured investors buy equities in place of gold.

In fact, gold has now lost momentum and is headed for its first decline in 12 years. Analysts and economists say there is more to come and gold could drop lower in the months to come. Check gold rates here

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