US Still Not Decided On Bailout Plan

Gold for December expiry finished down $17.80 at $891.20 while Congress heard testimony from White House officials and may soon decide whether or not to give its support to the proposed $700 billion bailout plan. The U.S. dollar saw moderate strength against other major currencies on Tuesday in New York. The dollar edged higher against the euro and moved away from a recently-seen four-week low. In trading with the British pound, the dollar inched away from a monthly low with a mild afternoon rally. MCX Gold contract for October expiry was also quiet shaky in the intra day trades and closed the session at Rs 13013 per 10 grams up Rs 104.

Oil prices also fell on Tuesday as November took over as the front-month contract, further reducing gold's hedge value. Light sweet crude fell to $106.09, down $3.28 on the session. October crude oil finished above $120 a barrel on Monday as traders scrambled to collect oil on the final day of the contract.