Gold closes lower on weak global cues
08/07/2014 09:39
Gold futures ended lower in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market amid concerns that the US Federal Reserve may start tightening monetary policy as the world’s biggest economy improves, dimming the appeal of the bullion as a store of value. The IMF saw the US economy accelerating in the coming months while Friday’s payrolls data signaled ample evidence over a recovery in the country’s job market, boosting the case for the Fed to withdraw stimulus. Stronger dollar dimmed the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal more expensive for those holding other currencies, thus weighing on demand. Gold futures may trade on a cautious note ahead of the US data which may determine the health of the world’s largest economy. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,490 per 10 grams, down by 0.24 per cent, after opening at Rs. 27,482, against the previous closing price of Rs 27,557. It touched an intra-day low of Rs 27,382
08/07/2014 09:39
Gold futures ended lower in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market amid concerns that the US Federal Reserve may start tightening monetary policy as the world’s biggest economy improves, dimming the appeal of the bullion as a store of value. The IMF saw the US economy accelerating in the coming months while Friday’s payrolls data signaled ample evidence over a recovery in the country’s job market, boosting the case for the Fed to withdraw stimulus. Stronger dollar dimmed the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal more expensive for those holding other currencies, thus weighing on demand. Gold futures may trade on a cautious note ahead of the US data which may determine the health of the world’s largest economy. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,490 per 10 grams, down by 0.24 per cent, after opening at Rs. 27,482, against the previous closing price of Rs 27,557. It touched an intra-day low of Rs 27,382
