Atlanta Fed President Dennis Lockhart warned that the Fed may well reduce its USD 85 billion monthly bond buying program next month.
Gold, which tends to benefit from ultra-loose-monetary policies from global central banks, has been severely hit by Fed stimulus taper fears, given that the precious metal is a hedge against the inflationary risk of monetary stimulus.
Gold futures for December 2013 contract, at MCX, were trading at Rs. 30,170 per 10 grams, down by 0.79 per cent after opening at Rs. 30,300, against the previous closing price of Rs 30,411. It touched an intra-day low of Rs 30,152. (At 10:51 AM).
Dion Global Solutions Ltd.