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Gold futures on the Multi Commodity opened lower at Rs 31,055 per 10 grams on Tuesday against the previous close of Rs 31,119.
December contract was trading marginally higher at Rs 31,109 at 12.30 pm. It made a day’s high of Rs 31,133 and low of Rs 30,968.
In Comex, gold for December delivery was trading high by $3 at $1,711 a troy ounce at 12.30 pm.
Belying market expectations, the Reserve Bank of India retained the repo and reverse repo rates untouched and reduced the cash reserve ratio by 0.25 per cent.
The move is expected to increase money supply and lead to rupee depreciation against dollar. This development will limit any sharp fall in gold prices in India.
Gold may trade on the higher side, if rupee depreciation continues.
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