Gold was seen trading lower tracking global cues which were trading in narrow range on Wednesday. International gold sentiments were in tight range as investors waited for interest rates cues from US Federal Reserve.
Rise in interest rates in the US will pull gold prices lower as the yellow metal is sensitive to interest rate hikes as it will lift dollar and other investment options.
As per Reuters report, data on Tuesday showed U.S. single-family home sales unexpectedly rose in July, reaching their highest level in nearly nine years as demand increased broadly, brightening the housing market outlook.This raised the prospects of an interest rate hike.
At the Multi Commodity Exchange, Gold for October delivery was down Rs 62, or 0.20 per cent to Rs 31,308 per ten grams. The metal for month delivery contracts was riding lower by Rs 48, or 0.15 per cent to Rs 31,575 per ten grams.
International spot gold was seen trading at $1,336.95 an ounce.