Prices of gold futures remained stable in Asian trading hours on Tuesday, since the markets were nervous before the policy statement by the Federal Reserve this week amid mounting uncertainty regarding a possible rate hike.
On the Comex, gold futures for December delivery were steady at $1,107.40. Globally, gold retreated 0.2 per cent to $1,106.65 an ounce in Singapore.
Investors stayed cautious amid worries that the United States mixed economic reports and the recent volatility in the global financial markets will ask the US central bank to abstain from raising interest rates on Thursday.
Fed President Janet Yellen said that increasing of the interest rate depends on data, but also pointed out which it expects to raising rates before year-end.
Expectations of further debt ratios in the future are considered bearish for gold, as the precious metal strives to compete with the assets that support performance when rates are rising.
Fed meeting is starting from tomorrow’s and the gold has become sluggish. In international markets, gold is at its lowest level in the last 1 month. MCX gold trades around 0.40 per cent down to Rs 25,970.
In Delhi bullion marketplace, gold of 99.9 per cent and 99.5 per cent purity eased Rs 10 each to Rs 26,350 and Rs 26,200 per 10 grams, respectively.
Besides, sluggish demand from jewellers and retailers dampened sentiment.
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