Gold edged up today on good buying as latest gains triggered good bargain hunting in the metal. A further rally from hereon could see the metal take out its three month high near $1245 levels. Global equities are showing signs of some fatigue after sharp gains in last few days and this is benefiting Gold. COMEX Gold is quoting at $1242.65 per ounce, up 0.76% on the day. MCX Gold futures are trading at Rs 29313 per 10 grams, up 0.36% on the day.
A strong Indian Rupee capped gains for local Gold futures. Indian equities logged small gains in what was a highly volatile last trading day of the week. The Sensex settled below the psychological 29,000 level, after surging past that level in intraday trade. Both the Sensex and the Nifty hit their highest levels in 24 weeks. This boosted the Indian Rupee. The INR 66.82, the highest level against dollar, up 15 paise from previous close. This is a near three month high mark for the local currency.
Meanwhile, in a key update yesterday, many policy makers on the Federal Reserve back an interest rate hike 'fairly soon' if economy stays on course or strengthens, according to the minutes of the central bank's most recent meeting. However, a number of Fed members said they want the central bank to go slow on raising rates, given uncertainties about the new Trump administration's fiscal and trade proposals. The Fed should be cautious "in anticipation of policy proposals that might not be enacted, or that, if enacted might turn out to have different consequences for economic activity and inflation than currently anticipated," the minutes said.
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