Rupee appreciation weighs on Gold futures
02/07/2014 09:35
Gold futures posted slim losses in the domestic market on Tuesday as an appreciation in the Indian rupee against the US dollar more than offset the gains in the precious metal in the overseas market. Stronger rupee against the greenback exerted downward pressure on domestic bullion prices. Gold futures rose in the overseas market as violence in the Middle East including Iraq and Gaza and fresh tensions in Ukraine boosted the safe haven demand for the bullion. A weaker dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. A slowdown in US manufacturing in June signaled weakness in the world’s biggest economy, boosting the case for the Federal Reserve to stick to record low interest rates, bolstering the appeal of the bullion as a store of value. Gold futures may trade on a subdued today ahead of Fed Chairman Janet Yellen’s speech. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,746 per 10 grams, down by 0.11 per cent, after opening at Rs. 27,867, against the previous closing price of Rs 27,776. It touched an intra-day low of Rs 27,730.
02/07/2014 09:35
Gold futures posted slim losses in the domestic market on Tuesday as an appreciation in the Indian rupee against the US dollar more than offset the gains in the precious metal in the overseas market. Stronger rupee against the greenback exerted downward pressure on domestic bullion prices. Gold futures rose in the overseas market as violence in the Middle East including Iraq and Gaza and fresh tensions in Ukraine boosted the safe haven demand for the bullion. A weaker dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. A slowdown in US manufacturing in June signaled weakness in the world’s biggest economy, boosting the case for the Federal Reserve to stick to record low interest rates, bolstering the appeal of the bullion as a store of value. Gold futures may trade on a subdued today ahead of Fed Chairman Janet Yellen’s speech. Gold futures for August 2014 contract, at MCX, closed at Rs. 27,746 per 10 grams, down by 0.11 per cent, after opening at Rs. 27,867, against the previous closing price of Rs 27,776. It touched an intra-day low of Rs 27,730.
