Flat finish for Gold despite ECB easing bets
28/11/2014 09:12
Gold futures ended on a flat note, with a negative bias in the domestic market on Thursday as a slump in energy prices dented the precious metal’s appeal as an inflation hedge. Oil prices tumbled to the lowest level since 2010 after the OPEC refrained from cutting output to ease a supply glut. Meanwhile, German annual inflation slowed to 0.5 per cent in November 2014 from 0.7 per cent in October 2014. However, hopes that the European Central Bank (ECB) may undertake further policy easing measures to lift the 18-member Euro area economy from economic stagnation bolstered the appeal of gold, a hedge against the inflationary risk of monetary stimulus, supporting sentiment. ECB President Mario Draghi said that the Frankfurt based central bank is open to buying variety of assets, a sign that the ECB may consider sovereign bond purchases as part of a broader stimulus program. Gold futures may fall today amid dimming appeal of the bullion as an inflation hedge. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,247 per 10 grams, down by 0.44 per cent, after opening at Rs. 26,308, against the previous closing price of Rs 26,362. It touched an intra-day low of Rs 26,131.
28/11/2014 09:12
Gold futures ended on a flat note, with a negative bias in the domestic market on Thursday as a slump in energy prices dented the precious metal’s appeal as an inflation hedge. Oil prices tumbled to the lowest level since 2010 after the OPEC refrained from cutting output to ease a supply glut. Meanwhile, German annual inflation slowed to 0.5 per cent in November 2014 from 0.7 per cent in October 2014. However, hopes that the European Central Bank (ECB) may undertake further policy easing measures to lift the 18-member Euro area economy from economic stagnation bolstered the appeal of gold, a hedge against the inflationary risk of monetary stimulus, supporting sentiment. ECB President Mario Draghi said that the Frankfurt based central bank is open to buying variety of assets, a sign that the ECB may consider sovereign bond purchases as part of a broader stimulus program. Gold futures may fall today amid dimming appeal of the bullion as an inflation hedge. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,247 per 10 grams, down by 0.44 per cent, after opening at Rs. 26,308, against the previous closing price of Rs 26,362. It touched an intra-day low of Rs 26,131.
