Gold prices bounced back in early morning trade in the domestic market on Wednesday following significant losses in the prior session as traders await the outcome of the two-day US Federal Reserve policy meeting, for greater clarity over the outlook for interest rates in the world’s biggest economy.
The world’s top central bank is pondering the timing for a maiden interest rate lift-off since 2006. However, the Fed may stop short of offering any major clues over the exact timing for a hike in borrowing costs as it awaits a heavy dosage of US economic data including jobs and Q2 GDP growth to determine the progress in the American economy after a Q1 stutter while heightened global risks and the strength of the dollar will also be weighed as the Fed considers when to say goodbye to its zero interest rate policy.
Speculation that the ongoing turmoil in Chinese shares may have severe repercussions on Gold demand in the Asian nation, the world’s second biggest bullion consumer curbed gains in the yellow metal.
At the MCX, Gold futures for August 2015 contract is trading at Rs 24,791 per 10 gram, up by 0.16 per cent after opening at Rs 24,778, against the previous closing price of Rs 24,752. It touched the intra-day high of Rs 24,799. (At 10:52 AM).
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