Prices of Gold futures in the domestic MCX market were trading marginally lower on Tuesday. The August contract trades at 9.40 am were trading at Rs. 46085, down by Rs 16. At the MCX market last night, gold price closed at Rs 46101. With optimistic expectations o the economic growth, investors are shifting to the equities that are considered risk assets. As a result, the demand for gold futures has slowed down. From the last month high Rs 48000, the gold in MCX has fallen about Rs 2000.
Bullion analysts predict that today’s trading session may see the gold futures fluctuate. They estimate that the price will move in the range of Rs.45,800 to Rs.46,330 in the MCX today.
In the international market, in the morning trading session in Asia, the August contract is traded at $ 1,700 an ounce with a loss of $5. Analysts say the demand for gold futures has eased as investors switched to investing in equities. In the wake of the FED meeting, investors staying cautious, which has affected the gold prices. The US Federal Reserve is set to begin its meeting tonight.
A key decision on interest rates will be announced on Wednesday. The investors and traders are awaiting the Fed’s decision news on interest rates. Usually, interest with an increase in interest rates, the gold price will fall.