Gold futures were trading lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid weak cues from the overseas market as caution persisted ahead of the US Federal Reserve monetary policy announcement later today with the central bank tipped to undertake another USD 10 billion cut in its monthly bond buying program, dimming the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange traded product (ETP) remain at a 12-week low, signaling weak investment demand for gold.
Gold futures for June 2014 contract, at MCX, is trading at Rs. 28,698 per 10 grams, down by 0.18 per cent, after opening at Rs. 28,725, against the previous closing price of Rs 28,750. It touched an intra-day low of Rs 28,680. (At 11:12 AM).