Yellow metal shines on safe haven appeal
19/11/2014 09:30
Gold futures surged 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 as rising geopolitical concerns amid deepening Ukraine-Russia spat and a slowing global economy with Japan back in recession boosted the safe haven appeal of the precious metal. The EU which has threatened to tighten sanctions against Russia blacklisted more Russian separatists after NATO accused Moscow of arming rebels in eastern Ukraine. Weaker dollar boosted the appeal of the yellow metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus boosting demand. Russia boosted gold reserves as the country’s central bank bought 150 metric tons of gold in 2014, up from 77 tons last year. Hopes of further stimulus in Euro area and Japan also boosted gold’s outlook, given that the precious metal is a hedge against the inflationary risk of monetary stimulus. Gold futures may fall today amid caution ahead of the release of FOMC minutes. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,596 per 10 grams, up by 1 per cent, after opening at Rs. 26,426, against the previous closing price of Rs 26,330. It touched an intra-day high of Rs 26,774.
19/11/2014 09:30
Gold futures surged 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 as rising geopolitical concerns amid deepening Ukraine-Russia spat and a slowing global economy with Japan back in recession boosted the safe haven appeal of the precious metal. The EU which has threatened to tighten sanctions against Russia blacklisted more Russian separatists after NATO accused Moscow of arming rebels in eastern Ukraine. Weaker dollar boosted the appeal of the yellow metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus boosting demand. Russia boosted gold reserves as the country’s central bank bought 150 metric tons of gold in 2014, up from 77 tons last year. Hopes of further stimulus in Euro area and Japan also boosted gold’s outlook, given that the precious metal is a hedge against the inflationary risk of monetary stimulus. Gold futures may fall today amid caution ahead of the release of FOMC minutes. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,596 per 10 grams, up by 1 per cent, after opening at Rs. 26,426, against the previous closing price of Rs 26,330. It touched an intra-day high of Rs 26,774.
