Gold rally fizzles out; trades flat

Updated: Thursday, November 8, 2012, 14:45 [IST]

The sharp rally in gold following the re-election of Barack Obama fizzled out with Gold Futures trading little changed over Wednesday's levels.

International spot gold was seen trading flat at $1,718 an ounce. The gains in yellow metal was moderated by strong dollar as investors focused on US Fiscal Cliff.

Gold futures for December delivery on the MCX was trading at Rs 31,290 per 10 grams, higher by Rs 84 at 2.30 pm IST.

Festival and wedding season in India is encouraging gold traders and investors to put money in yellow metal. Delhi gold of 99.9% purity rose and was seen at Rs 32,085 per 10 grams and gold of 99.5% was seen at Rs 31,885 per 10 grams.

However, the physical demand of gold may fade as the buyers may refrain due to high price.

Silver futures for December delivery on MCX was trading higher by Rs 177 at Rs 59,429 per kgs.

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