Gold Lower on Global Cues; US Data Weigh

Gold was seen trading lower tracking weak global cues weighed by speculation on interest rate hike by the Federal Reserve.

International gold was seen at two-week low after slipping 2 per cent in last session after the strong US economic data which fueled the hike in interest rate this year. International gold was seen trading at $1,188 an ounce.

Earlier, the Federal Reserve Chairman, Yellen said that interest rate hike is poised to happen if the there is an improvement in the US economy.

The dollar rose against a basket of currencies which weighed further on gold sentiment. Strengthening in the dollar makes gold expensive for the holders of other currency.

Gold rates on Wednesday slipped by Rs 100 to over a two-week low of Rs 27,350 per ten grams at the bullion market. Check gold rates in various cities here.

In the national capital, gold of 99.9 and 99.5 per cent purity dropped by Rs 100 each to Rs 27,350 and Rs 27,200 per ten gram respectively.

At the Muti Commodity Exchange, gold futures for the latest delivery was seen trading flat Rs 26,905 at 3.00 PM IST. It touched an intra-day low of Rs 26,890 per 10 grams.

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