Gold futures dip on improving US economic outlook
27/06/2014 09:53
Gold futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal as an improving outlook for the world’s biggest economy dampened the safe haven appeal of the yellow metal. A dip in the number of Americans’ filings for jobless claims last week and a revival in US consumer spending in May, signaled strength in the US economy, raising bets that the Federal Reserve may continue the rollback of its monthly bond buying program, dimming the appeal of gold, a hedge against the inflationary risk of monetary stimulus. Most Fed officials see the central bank to start hiking borrowing costs from next year, dimming the appeal of gold as a store of value. Federal Reserve Bank of St. Louis President James Bullard said that the US economy is strong enough to overcome any effect of a rise in short-term interest rates in 2015. Gold futures may fall today ahead of US consumer sentiment data which may show further improvement in the US economy. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,667 per 10 grams, down by 0.30 per cent, after opening at Rs. 27,703, against the previous closing price of Rs 27,751 It touched an intra-day low of Rs 27,490.
27/06/2014 09:53
Gold futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal as an improving outlook for the world’s biggest economy dampened the safe haven appeal of the yellow metal. A dip in the number of Americans’ filings for jobless claims last week and a revival in US consumer spending in May, signaled strength in the US economy, raising bets that the Federal Reserve may continue the rollback of its monthly bond buying program, dimming the appeal of gold, a hedge against the inflationary risk of monetary stimulus. Most Fed officials see the central bank to start hiking borrowing costs from next year, dimming the appeal of gold as a store of value. Federal Reserve Bank of St. Louis President James Bullard said that the US economy is strong enough to overcome any effect of a rise in short-term interest rates in 2015. Gold futures may fall today ahead of US consumer sentiment data which may show further improvement in the US economy. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,667 per 10 grams, down by 0.30 per cent, after opening at Rs. 27,703, against the previous closing price of Rs 27,751 It touched an intra-day low of Rs 27,490.
