Safe haven demand lifts bullion
10/11/2014 09:19
Gold futures surged in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as the US economy added fewer jobs last month, bolstering safe haven demand for the bullion.
The US economy added 214,000 workers in October 2014, after a revised gain of 256,000 in the previous month, trailing forecasts for a 235,000 gain.
The jobs data raised speculation that the US Federal Reserve may delay hiking interest rates, bolstering the appeal of the bullion as a store of value. Chicago Federal Reserve Bank President Charles Evans urged the Fed to exercise patience on raising borrowing costs.
A weaker dollar boosted the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Gold futures may fall today amid profit booking after hefty gains in the previous session.
Gold futures for December 2014 contract, at MCX, closed at Rs. 25,932 per 10 grams, up by 1.85 per cent, after opening at Rs. 25,425, against the previous closing price of Rs 25,461. It touched an intra-day high of Rs 25,963.
10/11/2014 09:19
Gold futures surged in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as the US economy added fewer jobs last month, bolstering safe haven demand for the bullion.
The US economy added 214,000 workers in October 2014, after a revised gain of 256,000 in the previous month, trailing forecasts for a 235,000 gain.
The jobs data raised speculation that the US Federal Reserve may delay hiking interest rates, bolstering the appeal of the bullion as a store of value. Chicago Federal Reserve Bank President Charles Evans urged the Fed to exercise patience on raising borrowing costs.
A weaker dollar boosted the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Gold futures may fall today amid profit booking after hefty gains in the previous session.
Gold futures for December 2014 contract, at MCX, closed at Rs. 25,932 per 10 grams, up by 1.85 per cent, after opening at Rs. 25,425, against the previous closing price of Rs 25,461. It touched an intra-day high of Rs 25,963.
