U.S. COMEX gold futures for December delivery settled down USD 2 an ounce at USD 1,693.80, with trading volume more than 20% below its 30-day average. Gold was down as uncertainty over the fiscal cliff continued and there was no progress in the budget talks. Positive data for unemployment claims today can push dollar higher thus further putting pressure on gold prices.
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund holdings rose 0.02% to 1351.54 tonnes on Wednesday from 1351.24 tonnes on Tuesday Gold is expected to be down as uncertainty over fiscal cliff continues and fears of deflation in US can push prices down.
Emkay Commodity Research commenting on the outlook said, "Gold in India is expected to be down as a stronger rupee against the dollar on clearance for FDI in retail in the parliament can put pressure on prices. Gold for February delivery on the Multi Commodity Exchange (MCX) was 0.53% down at Rs 31,199/10gms. After hitting the low of Rs 31,136/10gms."