Soft US labour market data boots bullion
27/11/2014 09:34
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after US jobless claims surged to the highest level since September last week while orders for capital equipment fell last month, dashing optimism over the outlook for the world’s biggest economy, raising bets that the US Federal Reserve may not hike short-term borrowing costs in the near-term, bolstering the appeal of the bullion as a store of value.
US jobless claims climbed 21,000 to 313,000 last week. A weaker dollar boosted the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
However, record high US stock prices curbed the demand for the yellow metal as an alternative asset, trimming gains in gold futures.
Gold futures may rise today as further monetary policy easing in China and weaker dollar boost demand for the bullion.
Gold futures for December 2014 contract, at MCX, closed at Rs. 26,362 per 10 grams, up by 0.14 per cent, after opening at Rs. 26,363, against the previous closing price of Rs 26,326. It touched an intra-day high of Rs 26,417.
27/11/2014 09:34
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after US jobless claims surged to the highest level since September last week while orders for capital equipment fell last month, dashing optimism over the outlook for the world’s biggest economy, raising bets that the US Federal Reserve may not hike short-term borrowing costs in the near-term, bolstering the appeal of the bullion as a store of value.
US jobless claims climbed 21,000 to 313,000 last week. A weaker dollar boosted the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
However, record high US stock prices curbed the demand for the yellow metal as an alternative asset, trimming gains in gold futures.
Gold futures may rise today as further monetary policy easing in China and weaker dollar boost demand for the bullion.
Gold futures for December 2014 contract, at MCX, closed at Rs. 26,362 per 10 grams, up by 0.14 per cent, after opening at Rs. 26,363, against the previous closing price of Rs 26,326. It touched an intra-day high of Rs 26,417.
