Gold traded higher over a three-month low on Monday, amid speculation that the Fed is nearing to increase interest rates in the United States. The US dollar took a reprieve from its recent recovery ahead of policy meeting of the Federal Reserve two days starting Tuesday.
On the Comex, gold futures for April delivery rose $ 6.50, or 0.56%, to trade at $ 1158.90 a troy ounce. Meanwhile, silver futures for May delivery gained 20.9 cents, or 1.35%, to trade at $ 15.70 a troy ounce.
Gold for immediate delivery little changed at $ 1,158.31 an ounce in London.
The Fed may eliminate the “patient” word of his statement when he meets this week, giving you more flexibility in the timing of rate increases.
Traders would interpret such a move as a sign that the central bank could raise rates as early as its June monetary policy meeting.
Holdings in ETPs fell 3.1 metric tons to 1,640.4 tons as of March 13, the lowest since Jan. 22, according to Bloomberg data.
Money managers have reduced their bets, net long and sixth week, government data showed US. Investors sold 18.9 tonnes of bullion held by exchange-traded products last week, the sharpest decline since November on speculation that the Federal Reserve is now approaching raising interest rates in the United States who have been around zero since 2008 assembly.
The net longwave gold positions decreased by 26 percent to 64,925 futures and options in the week ending on March 10, according to US data Commodity Futures Trading Commission posted three days later. Long Holdings dropped for the sixth week, the longest segment since 2010.
At MCX gold with 0.25 per cent gains is trading up to Rs 25,900. The silver rose 0.5 per cent is trading around Rs 35,800.
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