Gold futures were trading lower in the domestic market on Wednesday as investors and speculators existed positions in the precious metal amid speculation that the US Federal Reserve today may announce a further pullback in its monthly bond buying program amid an improvement in the world's biggest economy, dimming the appeal of the yellow metal, a hedge against the inflationary risk of monetary stimulus.
Analysts expect the Fed to announce a USD 10 billion cut in QE, the same as announced in December.
Gold futures for February 2014 contract, at MCX, is trading at Rs. 29,358 per 10 grams, down by 0.55 per cent after opening at Rs. 29,450, against the previous closing price of Rs 29,521. It touched an intra-day low of Rs 29,350 (At 10:30 AM).