The prices of gold gained in Asia on Thursday as the dollar lost value in expectations for continued low rates in the U.S., even after the Fed stop its asset purchase program.
The Indian markets were also watching the evolution of the second top consumer India, where the new government are expected to cut a record high import duty on gold in the union budget to be presented today.
International commodity markets are exposed out of the mix signal. Gold – Silver is trading with gains. Com gold with a gain of 0.51 percent is trading at 1,331 dollars per ounce. After silver 0.74 per cent gains is trading above $ 21 per ounce.
At U.S. exchange Comex gold futures for August delivery traded at $ 1,327.70 a troy ounce, up 0.26%, after hitting an overnight session low of $ 1,318.90 and off a high of $ 1,328.30.
Spot gold was edged up 0.1% to $ 1327.05 an ounce at 0018 GMT, after rising 0.5% in the previous session.
The Federal Reserve has started detailing its plans for relieving U.S. economy era of loose monetary policy, indicating that it will end its asset purchases in October and that appears near agree on a plan to monitor interest rates in the future, according to the minutes of the meeting June monetary policy.
Gold had come under pressure since last Thursday, when a sharp U.S. jobs report stoked speculation that the Fed may raise rates sooner than expected. A walk would stimulate investors to withdrawing money from Non interest earning assets like gold.
India is likely to slash its gold import duty to 6% from a record 10% budget on Thursday, leading to an increase in imports in the second half, a senior official in trade group country’s largest gold, he said.
Any jump in imports from India are likely to shore up in gold prices.