Gold futures were trading lower during afternoon trade in the domestic market on Tuesday as investors and speculators exited their positions in the precious metal ahead of the US Fed’s policy meeting that kicks off later in the day, which could provide further clues over the timing of interest rate hikes this year.
Further, the central bank is widely expected to raise interest rates at its two-day meeting. Meanwhile, the focus will be on any fresh hints on the pace of further tightening in the months to come and next year, and any further details on its plans for trimming its balance sheet.
At the MCX, gold futures for August 2017 contract is trading at Rs 28883 per 10 grams, down by 0.38 per cent, after opening at Rs 28987, against a previous close of Rs 28993. It touched the intra-day low of Rs 28857 (at 14:12 hours).