Sentiment improved further as the Bank of Japan had bolstered monetary stimulus to help revive the world's third largest economy, lifting the demand outlook for the precious metal, which is a hedge against the inflationary risk of monetary stimulus.
At the Commodity Exchange (COMEX), gold future for February 2013 delivery traded at US$1,642.7 per ounce, down by 3.2 per cent as dollar strengthened against other currencies. It opened at US$1,648.5 against the previous closing price of US$1,645.9. It touched the intra-day low of US$1,636.3. (At 11.30 am IST).