Gold rises marginally after steep drop on Monday

MUMBAI: Gold was marginally higher on MCX in early noon trade, up Rs 79 to Rs 27,840 per 10 gm after having slumped yesterday by Rs 594, its steepest drop in six months.

It was tracking Comex gold, which fell more than $30 an ounce on worries that US Federal Reserve chairwoman Janet Yellen would adopt a more hawkish view on monetary policy at her two-day testimony to Congress that begins today.

Harshad Ajmera, a Kolkata-based jeweller, expects spot gold to trade in a Rs 28,080-28,875 range over the short term.

“All eyes will be on what course the Fed decides to take, and the price view will be taken post that,” said Ajmera.

Demand for paper gold rose 8.68 metric tonnes to 808.75 tonnes on Monday, the most since October 2012, spurring the view that low prices may boost demand for the yellow metal.