Feb 21, 2013, 09.07 AM IST

Gold languishes near seven-month low on Fed worries

Gold rebounded half a percent on Thursday, but remained near a seven-month low hit in the previous session on worries that the Federal Reserve may stop or slow its bond buying programme.

Source: Reuters

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Gold languishes near seven-month low on Fed worries

Gold rebounded half a percent on Thursday, but remained near a seven-month low hit in the previous session on worries that the Federal Reserve may stop or slow its bond buying programme.

Gold fell together with other commodities, amid speculation that a hedge fund had been forced to liquidate positions across metals and oil markets.

Fundamentals

* Spot gold gained nearly half a percent to USD 1,569.26 an ounce by 0034 GMT, after falling to USD 1,558.24 in the previous session, its lowest since last July. It fell 2.6 percent on Wednesday, posting the biggest daily drop in a year.

* US gold fell 0.6 percent to USD 1,569.20.

* A number of Federal Reserve officials think the central bank might have to slow or stop buying bonds before seeing the pickup in hiring the program is designed to deliver, according to minutes of the central bank's policy meeting last month.

* India's trade ministry has recommended suspension of gold jewellery imports from Thailand, which are taxed at only 1 percent under a bilateral agreement while such imports from other countries are taxed at 10 percent.

* Anglo American Platinum (Amplats)