Prices of gold futures rose on Friday but have stabilized below $ 1,200 an ounce doorway as the dollar has strengthened on the expectations of a rate hike by US Fed in 2015.
But some purchasing interest from Asia can be supporting bullion at current levels, traders say, allowing it keep in spite of rising equity markets.
An increase in gold prices above $ 1,230 an ounce last weekend around $ 1140 a week earlier has boosted investors cautious, said the bank branch manager in Tokyo.
On the Comex, New York, gold futures for February delivery were up 0.38% to $1,199.30.
Spot gold little changed at $ 1,198.20 an ounce. Bullion missed nearly 2 percent so far this week, after having risen in the last two.
The greenback continued to benefit from the latest policy declaration from the Federal Reserve. On Wednesday, the Fed said that it would “patient” before hike rates, said the guidance is consistent with earlier statement assurances that rates will stay low “for a considerable time.”
Central bank recognized the improved in the labor market of the United States and said the economy is progressing towards its goals of inflation and employment.
The world’s second largest gold importers Asian country India, being offered a discount of $ 2 an ounce against London prices for the first time by almost five months due to an excess supply the market.
Importers often charge a premium over London prices, but is expected of demand in India fall strongly this month after shipments increased in the last three months.
At the Multi Commodity Exchange, gold for delivery in February 2015 contracts rose Rs 34, or 0.13%, to Rs 26,849 per 10 grams in futures trade today after participants created fresh positions taking cues from overseas markets.
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