US gold futures struggled for the direction in submitted on Tuesday since the expectations of a rate increase by the Federal Reserve later this year weighed.
On the Comex Gold for December delivery inched up $1.40, or 0.12%, to trade at $1,134.20 a troy ounce. Gold fell by 0.57 per cent to $1,133.40 an ounce in New York on Monday.
St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart, both made in the case of higher interest rates in the United States later this year, weighing on gold.
Investors were looking ahead to a speech from Fed President Janet Yellen later in the week for clarity in the bank’s decision this past week to leave interest rates unchanged.
Most market pundits believe the Fed will start to raise rates in December after holding policy steady last week.
In a similar fashion, Gold for delivery in October dropped by Rs 51, or 0.19 per cent, to Rs 26,294 per 10 gram at the Multi Commodity Exchange.
Bullion market observers said the drop in gold futures was primarily in line with a weak tendency overseas on speculation that interest rates in the United States still can before the end of the year increase as officials, Federal reserve tried to allay concerns about the health of the economy, eroding demand for safe haven.
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