Weaker dollar lifts bullion
12/11/2014 09:24
Gold futures ended higher in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market after the US dollar weakened against a basket of major currencies, boosting the demand for gold as an alternative asset.
Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Increased physical demand for the bullion after prices slumped to a four-year low in recent sessions also boosted the precious metal. Austria’s mint said that sales of gold coins were 40 per cent higher this month so far, compared to the entire month of October.
However, a sixth straight decline in holdings in bullion-backed exchange traded products (ETP) signaled weakening investment demand in the bullion. Holdings in the SPDR Gold Trust, the biggest bullion-backed ETP plunged to a six-year low on Tuesday, marking the biggest losing streak since last November.
Gold futures may fall today as weaker investment demand and bets of a rise in US interest rates dim interest in the precious metal.
Gold futures for December 2014 contract, at MCX, closed at Rs. 25,796 per 10 grams, up by 0.24 per cent, after opening at Rs. 25,653, against the previous closing price of Rs 25,733. It touched an intra-day high of Rs 25,878.
12/11/2014 09:24
Gold futures ended higher in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market after the US dollar weakened against a basket of major currencies, boosting the demand for gold as an alternative asset.
Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Increased physical demand for the bullion after prices slumped to a four-year low in recent sessions also boosted the precious metal. Austria’s mint said that sales of gold coins were 40 per cent higher this month so far, compared to the entire month of October.
However, a sixth straight decline in holdings in bullion-backed exchange traded products (ETP) signaled weakening investment demand in the bullion. Holdings in the SPDR Gold Trust, the biggest bullion-backed ETP plunged to a six-year low on Tuesday, marking the biggest losing streak since last November.
Gold futures may fall today as weaker investment demand and bets of a rise in US interest rates dim interest in the precious metal.
Gold futures for December 2014 contract, at MCX, closed at Rs. 25,796 per 10 grams, up by 0.24 per cent, after opening at Rs. 25,653, against the previous closing price of Rs 25,733. It touched an intra-day high of Rs 25,878.
