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1.Gold slides as support seen for Fed tapering

GOLD futures slid in the early part of Thursday's Asian session after the releaseof minutes from the Federal Reserve's July monetary policy meeting showedsupport among Fed members for tapering the central bank's easing efforts atsome point this year. On the Comex division of the New York MercantileExchange, gold futures for September delivery slipped 1.05% to USD1,355.60 inAsian trading Thursday. The September contract settled down 0.18% atUSD1,370 per ounce Wednesday. Stimulus tools such as the Fed's USD85 billionin monthly bond purchases tend to weaken the dollar by driving down interestrates, making gold an attractive hedge, and talk of their dismantling canstrengthen the dollar and weaken gold. "A few members emphasized the

importance of being patient and evaluating additional information on theeconomy before deciding on any changes to the pace of asset purchases,"according to the Fed minutes.That can be interpreted as some Fed memberswanting to take a wait-and-see approach to tapering. However, "Almost allparticipants confirmed that they were broadly comfortable" with thecommittee reducing "the pace of its securities purchases later this year," the

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minutes indicated.Most market participants expect tapering to arrive as soon asSeptember, though some see the Fed pushing it off until December. The centralbank added it expects the U.S. economy to continue improving in the secondhalf of this year.

2.Gold slips for second day on stimulus worries

Gold fell for a second session on Thursday after minutes from a Federal Reservepolicy meeting failed to ease fears the US central bank would begin tapering itseconomic stimulus from next month. The minutes of the Fed's July 30-31meeting, released on Wednesday, showed that a few officials thought lastmonth it would soon be time to slow the pace of their bond buying "somewhat"but others counseled patience. Gold, often bought as a hedge against inflation,initially gained on the minutes due to the lack of consensus, but turned negativeafter US Treasury yields and the dollar rose. "I don't think the Fed minutes gaveaway too much," said Victor Thianpiriya, an analyst at ANZ in Singapore. "Nottoo much has changed (on the outlook for stimulus). But the reaction inTreasury yields and the dollar is impacting gold." Spot gold had declined 0.2percent to USD 1,362.79 an ounce by 0332 GMT, after falling 0.3 percent the daybefore. US gold dropped about USD 7 to USD1,362.70.Traders said prices could

see more downside if they fall below USD 1,355 an ounce, with support nearUSD 1,345. Ten-year US Treasury yields jumped to 2.92 percent, a level last seenin July 2011, as markets interpreted the minutes to mean the Fed did notcompletely rule out a scale back from next month. The US dollar also edgedhigher.

3.MCX Gold December contract trades lower

At 10:52 hrs MCX Gold October contract was trading at Rs 31330 down Rs 114,

or 0.36 percent. The Gold rate touched an intraday high of Rs 31426 and anintraday low of Rs 31216. So far 1958 contracts have been traded. Gold priceshave moved down Rs 520, or 1.63 percent in the October series so far. MCXGold December contract was trading at Rs 31261 down Rs 132, or 0.42 percent.The Gold rate touched an intraday high of Rs 31350 and an intraday low of Rs

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31165. So far 79 contracts have been traded. Gold prices have moved up Rs 321,or 1.04 percent in the December series so far.

4.MCX Goldguinea October contract gains

At 14:02 hrs MCX Goldguinea August contract was trading at Rs 25532 up Rs 92,or 0.36 percent. The Goldguinea rate touched an intraday high of Rs 25588 andan intraday low of Rs 25288. So far 3795 contracts have been traded.Goldguinea prices have moved up Rs 3826, or 17.63 percent in the August seriesso far.MCX Goldguinea September contract was trading at Rs 25316 up Rs 57, or0.23 percent. The Goldguinea rate touched an intraday high of Rs 25395 and anintraday low of Rs 25100. So far 2053 contracts have been traded. Goldguineaprices have moved up Rs 4606, or 22.24 percent in the September series sofar.MCX Goldguinea October contract was trading at Rs 25235 up Rs 80, or 0.32percent. The Goldguinea rate touched an intraday high of Rs 25300 and anintraday low of Rs 25050. So far 158 contracts have been traded. Goldguineaprices have moved up Rs 2746, or 12.21 percent in the October series so far.

5.Gold demand absent as traders await resumption of imports

GOLD demand in India remained subdued on Thursday due to non-availability of

the yellow metal, even as prices hit their highest level in nearly ninemonths.India may re-start imports by as early as next week or so after thecentral bank clarified a new rule that brought the flow of the precious metalinto the world's top gold consumer to a standstill at the end of July. "It has beenexactly a month since we last imported ... there are no stocks in the market,"said Haresh Acharya, head of bullion desk, Parker Bullion. At 2:41 p.m., theactively traded contract for October delivery on the Multi Commodity Exchange(MCX) was 0.22 percent lower at 31,513 rupees per 10 grams, easing from a high

of 31,595 rupees hit earlier in the day, a level last seen on November 29, 2012.In the overseas market, gold fell for a second session after minutes from aFederal Reserve policy meeting failed to ease fears the US central bank wouldbegin tapering its economic stimulus from next month. However, a weakerrupee limited the downside in prices. The rupee plays an important role indetermining the landed cost of the dollar-denominated yellow metal. Silver

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contract for September delivery on the MCX was 0.18 percent lower at 51,351rupees per kg.

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