Gold futures were trading little changed in the domestic market on Friday as investors and speculators stayed cautious over booking fresh positions in the precious metal as a rebound in global equities dimmed the safe haven appeal of the bullion.
Robust US Q4 GDP data which showed that consumer spending rose at the fastest pace in three years last quarter raised fears over further stimulus tapering by the US Federal Reserve, dimming the outlook for the bullion, which is a hedge against the inflationary risk of monetary stimulus.
A stronger dollar dimmed the appeal of the precious metal as an alternative asset. Stronger dollar makes gold more expensive for those holding other currencies, thus dimming demand.
Gold futures for February 2014 contract, at MCX, is trading at Rs. 29,397 per 10 grams, up by 0.06 per cent after opening at Rs. 29,363, against the previous closing price of Rs 29,378. It touched an intra-day high of Rs 29,435 (At 10:46 AM).
Dion Global Solutions Ltd.