Gold futures contributed to a drop in losses on Wednesday, as US housing data boosted demand for the US dollar, but the precious metal remained under pressure amid a general rise in risk appetite.
On the Comex Exchange, gold futures for December delivery were down 0.16% at $1,277.60, off session lows of $1,274.68.
MCX Gold was down 0.60 per cent at Rs 28906 per 10 gram.
The yellow metal suffered its smallest decline in a single day in nearly six weeks on Tuesday after strong data on retail sales and manufacturing activity in the United States kept alive the opportunity to raise interest rates by the Federal Reserve this year.
Market participants were watching the latest Fed meeting on indicators for future policies.
The demand for precious metals as a safe haven continued to weaken after North Korea said on Tuesday it had postponed a decision on a plan to launch a missile in the US area of Guam in the Pacific Ocean, while watching the US measures a little longer.
However, the US dollar sentiment has become weak after the US Commerce Department said on Wednesday that the number of homes and building permits dropped in July.
Latest holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.53% to 791.01 tonnes on Monday.
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