Gold rally eases ahead of Federal Reserve decision

Gold was seen steady on Wednesday, on the Multi Commodity Exchange, with gold for August delivery contract opening at Rs 29,710 per 10 grams and was seen trading at Rs 29,710 per 10 grams at 02.20 pm IST.

Gold futures contract for October delivery contract was trading at Rs 30,110 per 10 grams.

Investors remained cautious ahead of the outcome of the Federal Reserve's meet, which would decide the direction of the bullion, at least in the short term. Spot gold was seen trading at $1,614 an ounce.

If the outcome is positive, it will boost sentiment for gold, as it is considered hedge against inflation.

However, ECB meet which is being held tomorrow will also enable gold get some direction, especially after its chief, Mario Draghi's, statement last week, wherein he said that the ECB would do whatever is needed within the bank's mandate to keep the euro zone together.

MCX spot gold was seen trading at Rs 29,745 per 10 grams, while silver was seen trading at Rs 53,200 per kgs.

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