Gold drops on strengthening emerging market currencies and euro equity markets. Gold fall by 0.70% and made the low of $1252.16 at international market.
Emerging market currencies gained today after a weak start on China concern. Among Asia pacific currencies, except Chinese Renminbi all currencies remained positive while in EMEA countries major currencies remained positive.
European markets remained positive today after a week fall. Among major indices FTSE 100 gained by 0.36%, DAX gained by 0.64% and CAC 40 gained by 0.76%.
DXY index rose by 0.24% and made the high of 80.76 before FOMC statement on 29th January at 0700 GMT. According to majority of analysts Fed is expected to continue tapering of bond buying program by $10 billion. It may plunge Gold prices heavily in this week.
At domestic market heavy appreciation in rupee kept precious metal under pressure. INR fell from the high of 63.18 to 62.50 in a day. February contract of Gold fell by 0.79% to Rs.29563 at 1140GMT.
Tapering impact on Gold prices may overshadow the support from Chinese physical buyers in long run.