Prices of gold futures pushed higher on Wednesday, taking a month off, but gains of the previous week, as investors awaited to hear about the outlook for interest rates in the United States from a policy meeting of the Federal Reserve that starts later in the session.
U.S. gold futures for December delivery were up 0.49% to $1,108.00 an ounce on the Comex. Spot gold eased 0.1 per cent to $1,103.95 an ounce.
Investors were looking ahead to the outcome of the policy setting meeting Fed began two days later in the day amidst the uncertainty over whether the central bank may raise interest rates in the short term, first time in nearly a decade on Thursday.
The uncertainty about when to a rate hike weighed on gold throughout the year, send in excess of 6 percent. Higher rates could dent demand for lack of interest paid by bullion, while enhancing the dollar.
Data on Tuesday showed consumer spending grew at a very healthy pace in the past two months, aimed to the underlying strength in domestic demand that could be strengthened case for the Fed to hike interest rates on Thursday.
The dollar strengthened in Asian trade on Wednesday, boosted by a rise in US yields after data optimistic consumer spending kept alive hopes that the Fed may raise interest rates this week.
Gold prices on MCX futures market were trading flat on Wednesday. MCX Gold December contract was trading at Rs 26182 up Rs 21, or 0.08 percent.
For Commodity Market Tips, MCX Live Tips, Gold-Silver Prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at email@example.com or Call: +91-761-4012307