Rupee appreciation weighs on yellow metal
24/11/2014 09:26
Gold futures closed lower in the domestic market on Friday as an appreciation in the Indian rupee against the greenback more than offset the gains in the precious metal in the overseas market. Stronger rupee exerted downward pressure on domestic bullion prices. Gold futures advanced in the overseas market on Friday as a cut in Chinese interest rates boosted the appeal of the bullion as a store of value. China joined Japan and Europe to unleash further monetary stimulus as it cut benchmark rates for the first time since July 2012 to bolster growth in the world’s second biggest economy. Gold gains from easy money policies as it’s a hedge against the inflationary risk of monetary stimulus. Meanwhile, European Central Bank President (ECB) Mario Draghi re-iterated that it stands ready to broaden its stimulus program to boost inflationary expectations in the 18-member Euro area economy. Gold futures may advance today as stimulus in China, Japan and Europe boost outlook for the yellow metal. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,391 per 10 grams, down by 0.27 per cent, after opening at Rs. 26,483, against the previous closing price of Rs 26,463. It touched an intra-day low of Rs 26,348.
24/11/2014 09:26
Gold futures closed lower in the domestic market on Friday as an appreciation in the Indian rupee against the greenback more than offset the gains in the precious metal in the overseas market. Stronger rupee exerted downward pressure on domestic bullion prices. Gold futures advanced in the overseas market on Friday as a cut in Chinese interest rates boosted the appeal of the bullion as a store of value. China joined Japan and Europe to unleash further monetary stimulus as it cut benchmark rates for the first time since July 2012 to bolster growth in the world’s second biggest economy. Gold gains from easy money policies as it’s a hedge against the inflationary risk of monetary stimulus. Meanwhile, European Central Bank President (ECB) Mario Draghi re-iterated that it stands ready to broaden its stimulus program to boost inflationary expectations in the 18-member Euro area economy. Gold futures may advance today as stimulus in China, Japan and Europe boost outlook for the yellow metal. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,391 per 10 grams, down by 0.27 per cent, after opening at Rs. 26,483, against the previous closing price of Rs 26,463. It touched an intra-day low of Rs 26,348.
