MUMBAI (Commodity Online): MCX Gold rose by over 0.30% on Wednesday late afternoon as the US federal meeting is expected to pass the next round of Quantitative easing.
COMEX gold December contract is up by 3.4% and trading at $1812.5 while MCX gold October contract is trading at Rs 28143, up 0.37% after opening at Rs28006.
Although the fed is trying to stimulate the economy, investor sentiment towards QE3 remains negative on the grounds that infusing more money into the economy may devalue the currency. As such investors are rushing to Gold as a safe haven in the event of QE3 causing a weak dollar.
