Gold trades flat; trade may turn volatile after Federal Reserve report

Precious metal remained steady on Monday ahead of Federal Reserve Chairman Ben Bernanke's report to Congress this week to assess the Fed's outlook towards another round of quantitative easing.

Overseas spot gold was seen trading around US $1,586 a troy ounce. US Federal Reserve Chairman Ben Bernanke is expected to present his semi-annual monetary policy report to Congress on Tuesday and Wednesday.

While, on the domestic front, gold for August delivery on Multi Commodity Exchange (MCX)was trading to Rs 29,230 per 10 grams lower by 0.13% at 2:15 pm IST. It opened low at Rs 29,230 per 10 grams and touched a low of Rs 29,173 per 10 grams.

Ahmedabad spot gold was seen lower trading at Rs 29,071 per 10 grams, while silver was seen trading at Rs 51,543 per kgs.

Bullion prices in India, gold of 99.9 and 99.5% purity was at Rs 29,605 and Rs 29,405 per 10 grams, respectively. Despite fall in prices last week, buyers refrained from gold purchases on expectations of bigger fall.

MCX silver futures edged marginally lower by Rs 202 per kg, silver for September delivery was seen trading at Rs 52,565 per kgs.

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