Gold futures continued their downward journey on Thursday as investors and speculators turned cautious ahead of key US economic data which may show further strength in the world's biggest economy, boosting the case for the US Federal Reserve to continue tapering its monthly bond buying program in the near-term, dimming the appeal of the bullion, which is a hedge against the inflationary risk of monetary stimulus.
Investors are eying the weekly US jobless claims numbers, US manufacturing data and existing home sales data to be released later today. Speculation is rife that the Fed may cut QE by another USD 10 billion this month.
Gold futures for February 2014 contract, at MCX, is trading at Rs. 29,114 per 10 grams, down by 0.12 per cent after opening at Rs. 29,102, against the previous closing price of Rs 29,150. It touched an intra-day low of Rs 29,102. (At 10:58 AM).