Gold futures tumble on dimming safe haven appeal

Posted By: Religare
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Gold futures tumble on dimming safe haven appeal
Gold futures tumbled in the domestic market on Monday as easing geo political concerns amid a diminishing possibility of a US led military strike against Syria dimmed the safe haven demand for the precious metal.

Prices slumped as the US and Russia declared over the weekend that they have inked an agreement to find and destroy Syrian President Bashar al-Assad's stockpiles of chemical weapons as the US eyes a peaceful end to the crises in Syria.

Investors also are also exercising caution ahead of the two-day policy meet of the US Federal Reserve beginning on September 17, 2013. A decision by the Fed to taper QE may hurt the precious metal, a hedge against the inflationary risk of monetary stimulus.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 29,633 per 10 grams, down by 1.64 per cent after opening at Rs. 30,050, against the previous closing price of Rs 30,128. It touched an intra-day low of Rs 29,630. (At 10:49 AM).

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