Gold Futures dropped in trade in line with international prices, as US Fed Chair Janet Yellen hinted at an earlier than anticipated interest rate hike. The US Fed also decided to continue its QE3 tapering, by trimming bond purchases by another $10 billion.
Gold Futures for April delivery was trading lower by Rs 157 at Rs 29,857, while silver was trading at Rs 45,403, down Rs 270 on the MCX.
International prices of gold were also trading lower at $1,325.34 an ounce as the US Fed announcement sent the US dollar higher.
Dealers say that gold in the international markets could continue to head lower in the next few days to around the $1300 an ounce level. Check gold rates here