Gold Resumes Decline Ahead of US Fed Meet

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The yellow metal reversed Monday's gains to resume a sell-off on Tuesday as caution gripped traders ahead of the two-day US Federal Reserve monetary policy meet beginning later today in which the world's top central bank may offer some cues over the timeline to raise interest rates for the first time since 2006.

Check gold rates in Delhi, Mumbai, Chennai, Kerala, Kolkata, Pune and Bengaluru 

Gold Resumes Decline Ahead of US Fed Meet
Fed Chair Janet Yellen indicated recently that the FOMC is likely to raise rates at some point in 2015, curbing the lure for Gold as a store of value as the precious metal, which doesn't earn any interest, loses out against competing assets.

Fears that a steep stock market crash in China with equities extending Monday's brutal sell-off, the worst in eight years, may have severe repercussions on Gold demand in the Asian nation, the world's second biggest bullion consumer, marred sentiment.

At the MCX, Gold futures for August 2015 contract is trading at Rs 24,814 per 10 gram, down by 0.34 per cent after opening at Rs 24,799, against the previous closing price of Rs 24,899. It touched the intra-day low of Rs 24,777.

Read more about: mcx, us federal reserve, janet yellen
Story first published: Tuesday, July 28, 2015, 12:20 [IST]
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