Gold, silver pare gains ahead of EU summit outcome

Gold, silver futures came under pressure tracking overseas trend ahead of the completion of a two-day European Union summit.

Gold futures for December 2012 contract, at the MCX, were trading at Rs 31,353 per 10 grams, lower by 0.07 % at 2.10 pm IST. The precious metal opened at Rs 31,332 against the previous closing price of Rs 31,375.

MCX silver futures slipped by Rs 542 per kg, and was trading at Rs 60,190 per kg.

However, weak US jobs data may boost gold sentiment as investors would not expect an abrupt end to the QE3 unveiled last month.

International gold erased morning gains and was seen trading at $1,734 an ounce.

Dollar strengthened against the euro and other major currencies on uncertainty over an impending Spain bailout which weighed on gold sentiment.

Delhi spot gold of 99.9% and 99.5% purity was seen at Rs 31,725 and Rs 31,525 per 10 grams, respectively.

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