Gold futures fell on Tuesday morning to Rs 28,120 per 10 gm before recovering to half day Rs 28,170 per 10 gm. It touched an intraday high of Rs 28,245.
"The market is anxiously waiting for the outcome of the FOMC (Federal Open Market Committee) meeting tomorrow. Fed President and CEO Janet Yellen will speak tomorrow and bullion market is holding a close watch over the Yellen review on the purchase program of U.S. bonds.
In the spot market, gold an additional 110 rupees dropped by 10 grams to Rs 28,610.
"The outlook for gold appears to be stable at this time. If the rupee is strong, then a further decline is expected. There is a great excitement in the market that the new government will do partially back of import duties, by which is making the cheapest gold. All eyes are on the new government's stance on gold.
Gold demand in India fell 26% in the first quarter of calendar year 2014 due to higher duties for the import and Rule 80-20 that has held the supplies, so the landed cost of the yellow metal expensive. Rules 80 to 20 refer to the condition that 20% of the gold imported must be exported.
In the international marketplace, gold traded below $ 1,300 an ounce after clumsily purchases and wounded yesterday as investors weigh the outlook for monetary stimulus measures in the USA.
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