Gold futures were trading lower in the domestic market on Tuesday tracking a weak trend in the overseas market as investors and speculators exited positions in the precious metal ahead of the two-day meet of the US Federal Reserve beginning today where the central bank is tipped to undertake a further cut in QE, dimming the appeal of the yellow metal, which is a hedge against the inflationary risk of monetary stimulus.
Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, fell 0.5 per cent to 812.78 metric tons on Monday, signaling weakening investment demand.
Gold futures for April 2014 contract, at MCX, is trading at Rs. 30,169 per 10 grams, down by 0.68 per cent, after opening at Rs. 30,350, against the previous closing price of Rs 30,375. It touched an intra-day low of Rs 30,125. (At 11:34 AM).