Stock Tips - Gold prices fell by 0.13 per cent on Thursday as investors digested Federal Reserve views on interest rates and China consumer price data. Consumer prices in China rose 0.5 per cent in January month-on-month, matching expectations and at the same level as the previous month. At the MCX, Gold futures for February 2016 contract is trading at Rs 28,850 per 10 gram, down by 0.13 per cent after opening at Rs 28,888, against the previous closing price of Rs 28,888. It touched the intra-day low of Rs 28,828. . The Federal Reserve's January meeting provided little indication that the U.S. central could accelerate its pace of tightening in the foreseeable future. "Many participants indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward keeping the federal funds rate at its effective lower bound for a longer time," the FOMC said in the minutes.

Markets from Europe to the US jumped as oil prices were back to levels last seen at the start of the month, eroding the lure for gold as an alternative asset. However, hopes that the US Federal Reserve may push back the timetable for further monetary tightening in the world’s biggest economy supported the bullion’s appeal as a store of value. Minutes from the Fed’s January meet underlined risks to the US economy stemming from falling commodity prices and a financial market rout, a sign that the central bank may go slow over further rate hikes. However, an unexpected rise in US wholesale prices by 0.1 per cent in January signaled that inflation may drift closer to the Fed’s goal, making traders cautious over US interest rate outlook. Gold may extend a drop today as a return in global risk taking appetite eases safe haven lure.

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