Gold edges up; awaits leads from US Fed

Gold edges up; awaits leads from US Fed

Mumbai: India gold edged higher on Wednesday afternoon following similar trend overseas, with investors awaiting the conclusion of the US Federal Reserve meeting for direction in the precious metals complex, dealers said.

At 1:07pm, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.21% higher at 28,099 per 10 grams.

Global gold prices edged up, as worries about a worsening euro zone debt crisis supported safe-haven sentiment ahead of the conclusion of a US Federal Reserve policy meeting.

The Fed, which has made clear it is intent on taking further steps to lift growth, is expected to decide to stock up on longer term Treasury notes to boost a faltering economy.

A stronger rupee, which plays an important role in determining the landed cost of the dollar-denominated yellow metal, kept the upside in prices limited.

The rupee strengthened, pulling further away from a two-year low touched in the previous session, aided by dollar inflows and a firm euro.

Gold traders took to the sidelines as prices recaptured $1,800 an ounce.

“Buying is dead as prices have breached $1,800 again, in rupee terms gold is still costly," said a dealer with a private gold importing bank in Mumbai.

Buying could pick up in the next few weeks if prices stabilise, ahead of the important Diwali and Dhanteras festivals in the last week of October and the wedding season that will continue till December.