International gold higher on euro zone concerns

Overseas gold firmed after hitting 1-1/2 week high on Tuesday after Germany's central bank expressed concerns about the euro zone crisis. International gold was seen trading at $1,593 an ounce.

Sentiment improved after reports that ECB's funding promises was not over, and German central bank had set aside billions more euros.

Domestically, gold futures were trading higher at Rs 29,485 higher by 0.14% on the Multi Commodity Exchange at 12.10 pm IST.

Delhi spot gold of 99.9% purity was seen at Rs 29,950 per 10 grams and gold of 99.5% was seen at Rs 29,750 per 10 grams.

Traders preferred to remain on the sidelines and refrained from buying activity ahead of a policy meeting of the Federal Reserve on March 19-20, 2013.

Exit from monetary stimulus from Central Banks will dampen the yellow metal sentiment as investors considered it has hedge against inflation.

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