Gold futures flat on MCX, silver down

Gold futures were seen trading flat on Saturday after bull rally in this week, gold futures for October contract on Multi Commodity Exchange was seen trading at Rs 31,882 per 10 grams, higher by 0.04% at 2.00 pm IST.

Gold futures for December 2012 contract, was seen trading flat at Rs 32,230 per 10 grams on MCX.

On Friday, gold futures fell as rupee appreciated against dollar. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Delhi spot gold of 99.9% and 99.5% purity was seen at Rs 32,700 and Rs 32,900 per 10 grams, respectively. Demand for physical gold was seen due to on going festive season.

MCX silver futures was marginally lower by Rs 47 per kg, and was trading at Rs 64,265 per kg.

Overseas spot gold surged to a six-month high after Federal Reserve Chairman Ben Bernanke's announced a quantitative easing programme in the US. This is expected to see fresh surge in gold as liquidity through the easing tends to chase precious commodities.

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