Gold trades flat on the MCX

Gold was trading flat on the MCX in the absence of any major cues. Gold for December delivery was trading at Rs 29,957, down Rs 38 over the previous day's close.

Gold and silver have been moving in a range in the last few trading sessions. Lack of cues have the left the precious metal directionless.

It's likely that the coming months may see some volatility in the precious metal ahead of the Fed meet next month. It's likely that the Fed may reduce its bond purchase programme, which could spark a sell-off in gold.

Gold is set to fall for the first time in 12 years and international gold prices have lost almost a fifth of their value.

Indian gold has not lost ground as much largely on account of the rupee depreciation that has taken place in the last six months.

Indian gold prices are largely determined by international gold prices and also by movement of the rupee against the dollar.

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