Gold prices were steady near the $ 1,200 level during European morning trade on Wednesday, because investors looked ahead the Federal Reserve releases minutes of its latest policy meeting later in the day.
On the Comex Exchange, US gold futures for delivery in December tacked on $ 1.70, or 0.14%, to trade at $ 1198.80 a troy ounce during early trading in London.
At the Multi Commodity Exchange, gold December futures with sharp gains of 0.68 per cent is trading at Rs 26,778.
100McxTips Analysts said a weak trend in the overseas markets as the dollar strengthened, before the Fed meeting mainly weighed on gold prices at futures trade here.
The prices of gold have been well supported in recent days because investors returned to the market amid signs of upward charts. Prices have risen almost 6% since hitting a minimum of four and a half days of $ 1130.40, the November 7th.
Later in the day, the Federal Reserve will be announced the minutes of its monetary policy meeting October, which ended its program of bond buying in a widely expected decision.
Even though recent advances, gold prices will probably remain vulnerable in the short term amid signs of US economic recovery that strengthening force the Fed to start raising interest rates earlier and quicker than ever previously thought.
Expectations of increased rates of loans in the future is considered bearish for gold, as the precious metal strives to compete with the assets that support performance when interest rates are rising.
The lower gold prices have spurred purchases. Trading of the SGE Benchmark jumped this week and imports from India rose in October. The Central Bank of Russia bought about 150 metric tons of metal this year, Governor Elvira Nabiullina said yesterday. Purchases were about 77 tons in 2013, the International Monetary Fund data show.
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