Caution ahead of FOMC meet drags down Bullion
16/12/2014 11:31
Gold futures fell in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as investors stuck to a cautious approach ahead of the two-day meet of the US Federal Reserve beginning today where the Fed may decide whether to retain its pledge of keeping interest rates at low levels for a “considerable time” as it weighs a slump in energy prices against an improving US economy.
A decision to drop it’s “considerable time” pledge will indicate that the era of loose monetary policy is soon coming to an end, bearish for gold, which tends to benefit from ultra-easy money policies.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,098 per 10 grams, down by 0.81 per cent, after opening at Rs. 27,225, against the previous closing price of Rs 27,320. It touched an intra-day low of Rs 26,986. (At 11:17 AM).
16/12/2014 11:31
Gold futures fell in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as investors stuck to a cautious approach ahead of the two-day meet of the US Federal Reserve beginning today where the Fed may decide whether to retain its pledge of keeping interest rates at low levels for a “considerable time” as it weighs a slump in energy prices against an improving US economy.
A decision to drop it’s “considerable time” pledge will indicate that the era of loose monetary policy is soon coming to an end, bearish for gold, which tends to benefit from ultra-easy money policies.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,098 per 10 grams, down by 0.81 per cent, after opening at Rs. 27,225, against the previous closing price of Rs 27,320. It touched an intra-day low of Rs 26,986. (At 11:17 AM).
