US rate outlook weighs down Gold futures
26/11/2014 09:30
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal as upbeat US third quarter GDP numbers signaled underlying strength in the world’s biggest economy, raising bets that the US Federal Reserve is on track to hike short-term borrowing costs next year, dimming the appeal of the bullion as a store of value. US Q3 GDP growth was upwardly revised from 3.5 per cent to 3.9 per cent, as the economy capped the strongest six months in a decade. However, a weaker dollar boosted the appetite for gold as an alternative investment, curbing losses in the bullion. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold futures may trade on a cautious note today ahead of a string of US economic data including jobless claims, new home sales, durable goods orders and personal spending numbers. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,326 per 10 grams, down by 0.58 per cent, after opening at Rs. 26,492, against the previous closing price of Rs 26,480. It touched an intra-day low of Rs 26,280.
26/11/2014 09:30
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal as upbeat US third quarter GDP numbers signaled underlying strength in the world’s biggest economy, raising bets that the US Federal Reserve is on track to hike short-term borrowing costs next year, dimming the appeal of the bullion as a store of value. US Q3 GDP growth was upwardly revised from 3.5 per cent to 3.9 per cent, as the economy capped the strongest six months in a decade. However, a weaker dollar boosted the appetite for gold as an alternative investment, curbing losses in the bullion. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold futures may trade on a cautious note today ahead of a string of US economic data including jobless claims, new home sales, durable goods orders and personal spending numbers. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,326 per 10 grams, down by 0.58 per cent, after opening at Rs. 26,492, against the previous closing price of Rs 26,480. It touched an intra-day low of Rs 26,280.
