Gold rally halted near a seven-week high on Wednesday as a weaker dollar and global equities led investors to seek safety in the precious metal.
The dollar index cared steep losses after a brutal shake long positions, with investors to find excuses to take profits as the year end is in sight.
Global shares plummeted yesterday by concerns that growth may slow down in China and an election will be called in Greece, helping to spark two days, the 3.3 percent gain in gold that it was the highest since November 7.
Bloomberg dollar spot index declined more than one month day before yesterday the Fed would meet next week to discuss the timing of the first interest rate hike since 2006 amid a fall of the energy. Oil prices in New York and London have broken down in falling markets as of global supplies services increased, curb appeal of gold as a hedge against inflation.
On the Comex, Gold for February delivery dropped 0.1 percent to $1,231.30 an ounce after gaining 3.5 percent the past two days.
On domestic at Multi Commodity Exchange, gold for delivery in far- month April was up by Rs 58, or 0.21%, to Rs 27,336 per 10 gram.
Robust latest economic data from the United States had led investors to think a rate hike could come soon. Gold tumbled to a four and a half year low last month duration.
As an asset non-interest bearing, gold had been struck by higher rates, but comments this week from Fed policy makers helped calm the nerves of investors.
The operators were also eyeing Govt regulatory developments in major Indian consumers, which could herald changes in import policies, according to a source.
For latest commodity market tips, MCX tips, news & updates with 100McxTips, for latest updates follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at firstname.lastname@example.org or Call: +91-761-4012307