Bullion ends little changed on US rate outlook
24/12/2014 09:36
Gold futures closed on a flattish note in the domestic market on Tuesday as investors and speculators stayed cautious over booking fresh positions in the precious metal tracking a subdued trend in the overseas market as upbeat US economic data bolstered the case for higher US interest rates, dimming the appeal of the yellow metal as a store of value.
The economy in the US expanded at the quickest pace in more than a decade as GDP rose an annualized 5 per cent last quarter, bolstering the case for the Fed to ponder an exit from its easy money policy stance sooner than later.
The US dollar index shot up to a five-year high, curbing the demand for gold as an alternative asset. Stronger US dollar makes the precious metal more expensive for those holding other currencies, thus dimming demand.
Gold futures may fall today as an improving US economic outlook dampens safe haven demand.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,625 per 10 gram, up by 0.06 per cent after opening at Rs 26,592, against the previous closing price of Rs 26,608. It touched the intra-day high of Rs 26,749 till the closing.
24/12/2014 09:36
Gold futures closed on a flattish note in the domestic market on Tuesday as investors and speculators stayed cautious over booking fresh positions in the precious metal tracking a subdued trend in the overseas market as upbeat US economic data bolstered the case for higher US interest rates, dimming the appeal of the yellow metal as a store of value.
The economy in the US expanded at the quickest pace in more than a decade as GDP rose an annualized 5 per cent last quarter, bolstering the case for the Fed to ponder an exit from its easy money policy stance sooner than later.
The US dollar index shot up to a five-year high, curbing the demand for gold as an alternative asset. Stronger US dollar makes the precious metal more expensive for those holding other currencies, thus dimming demand.
Gold futures may fall today as an improving US economic outlook dampens safe haven demand.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,625 per 10 gram, up by 0.06 per cent after opening at Rs 26,592, against the previous closing price of Rs 26,608. It touched the intra-day high of Rs 26,749 till the closing.
