Gold extended decline on Thursday while investors weigh the prospects for higher interest rates in the United States after the Federal Reserve raised its assessment of the economy and the job market, while recognizing of global risks.
The perspective of a surge in US rates makes accrue interest assets, including gold less attractive and helped pull bullion further away from a five-month high reached last week.
In the policy statement by Wednesday, the Fed said the US economy was expanding ‘at a robust pace “with strong profits in employment, leaving the Fed on track to increase the rates this year. But echoed that it would be” patient “to decide when to raise borrowing costs zero reference.
Gold futures for April delivery lost 0.3 percent to $1,283.20 an ounce on the Comex. Spot gold was down 0.3 per cent at $1,281.10 an ounce, adding to a 0.6 per cent decline in the previous session.
The Fed reaffirmed that it would be patient to decide when to raise borrowing costs zero reference although he acknowledged a reduction in certain inflationary measures.
The domestic currency opened at 61.44 per dollar. In the early morning, the rupee was trading at 61.44 to the dollar, down 0.05% from its previous close of 61.41.
However, due to the weakness in rupee in the domestic market, gold is showing slight gains. With 0.1 per cent surge on MCX gold is trading at Rs 27,780.
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