Gold futures trades lower; investors eye Federal Reserve meet

Gold futures reversed yesterday's gains and was seen trading lower on Multi Commodity Exchange. Gold for February delivery contract opened at Rs 31,465 per 10 grams and was seen trading at Rs 31,407 per 10 grams, lower by Rs 86 or 0.27% at 02.10 pm IST.

However, investors are likely to eye a Federal Reserve meet which is to be held later today hoping for further monetary easing, which will be bullish for gold, given that the precious metal is considered a hedge against the inflationary risk of monetary stimulus.

Overseas spot gold was seen trading at $1,710 an ounce.

Domestically, gold of 99.9 and 99.5% was at Rs 31,625 and Rs 31,425 per 10 grams, respectively.

Downtrend seen in futures may be due to profit booking by speculators and lower demand in the markets amid weak overseas trend.

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