Gold futures end higher on Fed hopes
01/07/2014 09:14
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal after a top official from the US Federal Reserve signaled that the central bank is likely to refrain from raising borrowing costs atleast for another year, boosting the appeal of the bullion as a store of value. The President of the Federal Reserve Bank of San Francisco John Williams said that it he expects the Fed not to raise interest rates until mid-2015 to support the US labour market recovery. US data also came in mixed on Monday as a jump in pending home sales was offset by a slowdown in Chicago manufacturing, signaling an uncertain recovery in the world’s biggest economy. Muted inflation in the Euro area raised speculation that the European Central Bank may stick to its ultra-easy money policy stance this week, boosting the outlook for the bullion, a hedge against the inflationary risk of monetary stimulus. Euro area consumer prices rose 0.5 per cent, year on year in June 2014, below the ECB’s 2 per cent target. Gold futures may trade on a cautious note today ahead of US manufacturing data. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,776 per 10 grams, up by 0.38 per cent, after opening at Rs. 27,632, against the previous closing price of Rs 27,672. It touched an intra-day high of Rs 27,850.
01/07/2014 09:14
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal after a top official from the US Federal Reserve signaled that the central bank is likely to refrain from raising borrowing costs atleast for another year, boosting the appeal of the bullion as a store of value. The President of the Federal Reserve Bank of San Francisco John Williams said that it he expects the Fed not to raise interest rates until mid-2015 to support the US labour market recovery. US data also came in mixed on Monday as a jump in pending home sales was offset by a slowdown in Chicago manufacturing, signaling an uncertain recovery in the world’s biggest economy. Muted inflation in the Euro area raised speculation that the European Central Bank may stick to its ultra-easy money policy stance this week, boosting the outlook for the bullion, a hedge against the inflationary risk of monetary stimulus. Euro area consumer prices rose 0.5 per cent, year on year in June 2014, below the ECB’s 2 per cent target. Gold futures may trade on a cautious note today ahead of US manufacturing data. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,776 per 10 grams, up by 0.38 per cent, after opening at Rs. 27,632, against the previous closing price of Rs 27,672. It touched an intra-day high of Rs 27,850.
