Gold trades flat on MCX ahead of Fed meet

MUMBAI: Gold on MCX, less taxes, was trading flat from Tuesday's close at Rs 27,910 per 10 gm in early noon trades ahead of the conclusion of a two-day Fed meet on interest rate outlook.

While paper gold traders are focusing on intraday bets, demand from jewellery buyers is seeing a gradual pick up, according to Harshad Ajmera, proprietor of Kolkata-based JJ Gold House.

“Prices seem to be in a weak trend, coinciding with marriage season demand that has picked up gradually since mid-January. That’s good news for consumers who could begin purchases in earnest from next month,” added Ajmera.

Options data on US-based Comex seemed to support Ajmera’s view. It showed a rise in outstanding positions– from 3,551 contracts on Friday to 3,634 intraday Tuesday – of traders who feel gold could decline to $1,250 an ounce from an intraday $1,280 now over the next 28 days. Similarly, positions of those hoping the metal will rise to $1,300 declined from 6,066 contracts to 5,988 intraday Tuesday.