Bullion updates - Gold Ends lower Ahead Of ECB Meet

The yellow metal retreated in the domestic and international market on Wednesday as rising equities and a rally in oil prices eroded the investment appeal of the precious metal as an alternative asset.

Traders were erring on the side of caution ahead of the European Central Bank (ECB) policy meet on Thursday in which the Frankfurt-based central bank could unveil fresh easing measures to boost growth and inflation the 19-member Euro area economy. The ECB is likely to cut its deposit rate by another 10 basis points and may boost its asset buying program. Gold being a hedge against the inflationary risk of monetary stimulus will benefit from further monetary easing by central banks. Read More - "Mcx Tips"
 

Traders are also awaiting next week’s US Federal Reserve meeting which may offer cues over the trajectory of interest rates in the world’s biggest economy.
 

Gold may continue to trade on a cautious note today ahead of the outcome of the ECB monetary policy meet.
 

At the MCX, Gold futures for April 2016 contract closed at Rs 29,598 per 10 gram, down by 0.71 per cent after opening at Rs 29,666, against the previous closing price of Rs 29,809. It touched the intra-day low of Rs 29,301.