Gold prices closed lower in the domestic market on Wednesday amid a flat
dollar, ahead of the release of the minutes of the Federal Open
Market Committee's Sept meeting on Thursday afternoon. Investors
await the release of the minutes from the Fed's Sept meeting on
Thursday for further hints on whether the US central bank could raise
short-term interest rates before the end of the year. A rate hike is
viewed as bearish for Gold, which struggles to compete with
high-yield bearing assets in rising rate environments. The US Dollar
Index, which measures the strength of the greenback versus a basket
of six other major currencies, inched up. Dollar-denominated
commodities such as gold become more expensive for foreign purchasers
when the dollar appreciates. At the MCX, Gold futures for October
2015 contract closed at Rs 26,555 per 10 gram, down by 0.25 per cent
after opening at Rs 26,700, against the previous closing price of Rs
26,621. It touched the intra-day low of Rs 26,416.
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