Gold futures trade higher following the FOMC meeting

Posted By: Religare
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Gold futures trade higher
Gold futures trades higher on Friday on MCX after the Federal Reserve's vow to keep interest rates low at least until late 2014 from Mid 2013 in January FOMC meeting.

Further the yellow metal remained firm in international market on Friday as investor's sentiments were bullish for precious metal after Fed's meeting.

Gold was also supported technically as analysts believed that the correction from US$1923.7 per ounce in early September has probably ended at US$1523.9 per ounce in December.

Moreover, the Fed's pledge to delay the first hike in interest rates to at least until late 2014 led the strengthening of Euro against dollar, which makes the dollar denominated precious metal to be cheaper for other currencies holders, which led the commodity to witness some buying support on the bourses.

On MCX, gold futures for February 2012 contract trades at Rs 27,844 per 10 grams up by 0.92 per cent after opening at Rs 27580 per 10 grams. (At 17:44 PM)

Dion Global Solutions Ltd

Read more about: gold, futures, mcx, interest rates
Story first published: Friday, January 27, 2012, 23:30 [IST]
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