Gold trades flat; awaits US non farm payrolls data

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Gold trades flat; awaits US non farm payrolls data
Gold for December delivery on the MCX was trading at Rs 30,065, marginally higher over Monday's close.

The metal is expected to trade in a range on the MCX, until international cues, particularly the US non farm payroll data is released towards the end of the week.

As strong US jobs data number may see gold falling as fears over Fed tapering might re-emerge in the month of December.

International gold prices are trading near their 5-month low a fresh worries over the Fed's tapering of its asset purchase programme re-emerge.

According to a Reuters report Spot gold slid 2.6 per cent on Monday - its biggest one-day fall in two months - after data showed a gauge of U.S. factory activity hit a 2-1/2-year high in November and construction spending increased solidly in October.

India has not benefited immensely from falling gold prices, largely on account of a falling rupee. A drop in the rupee makes gold more expensive and the Indian rupee has fallen sharply this year. This has negated all the benefits of falling international prices.

Moreover, a series of duty hikes to discourage gold imports has also made gold more expensive.

Read more about: gold, mcx
Story first published: Tuesday, December 3, 2013, 11:40 [IST]
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