Gold physical buying, especially for the marriage season, will remain prices steady domestically in the spot gold and futures trade on Friday.
However, each publishing data showing the growth of the economy may put stress on the yellow metal as the U.S. Fed could hasten winding its stimulus package.
The decision on the package, cut $ 75 billion from $ 85 billion this month, it is probable that during the meeting of the Fed during January 28-29.
Hedge against inflation
Overnight, hedge against inflation was utilized as reason to maintain stable gold. U.S. data showed jobless claims fell, whereas data showed factory output better. All of these were higher than what was estimated.
The only positive aspect of bulls volumes in Shanghai exchange was higher rate this week.
Currency movement of the domestic market may also have a minor role to play from a weak rupee against the dollar makes imports more expensive gold, crude oil and vegetable oils.
Spot gold, gold futures
In early trading in Asia, spot gold ruled at $ 1243.93 an ounce gold futures contract for February at $ 1243.40.
On Thursday, spot gold NCDEX had closed higher at Rs 29,470 for 10 gm. The MCX and NCDEX, February gold futures are likely to trade around Rs 29,000.
In international markets, gold – silver has seen a slight edge. Comex gold marginally up 0.15 percent is trading around $ 1,241 per ounce. The Silver with 0.25 per cent growth is trading above $ 20 per ounce.
Reported News Source: The Business Line