Gold trades steady as investors weigh prospects of US rate rise
Mumbai-India (Aug 27) Gold on MCX traded steady at Rs 27,881 per 10 gm at noon, tracking the overseas rate, which was marginally up by $4 at $1,285.32 an ounce (32 gm) as investors across the world assessed the probability of the US raising interest rates earlier than anticipated on the back of strengthening economic recovery.
A report showed US consumer confidence at a seven-year high in August. Private research group The Conference Board showed its index of consumer confidence at 92.4 in August, up from 90.3 in July. Such data has led to the dollar appreciating. A stronger dollar weakens gold prices as the metal is denominated in that currency.
Back in India, jewellers have been stocking up in expectation of festival demand, which usually begins picking up at the end of this month, more so as prices fell below Rs 28,000 over a week ago.