ECB comments hit Bullion
05/12/2014 09:30
Gold futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal after the European Central Bank (ECB) said that it will not consider bullion purchases. The ECB, which refrained from further easing measures on Thursday, said that it discussed buying all assets expect bullion and will reassess stimulus early next year. The ECB cut its inflation forecast to 0.5 per cent in 2014 from 1.1 per cent predicted a year earlier, dimming the appeal of gold as a hedge against inflation. A dip in US jobless claims boosted the dollar, curbing the appetite for gold as an alternative asset while raising bets of earlier than expected US monetary tightening, weighing on the demand for gold as a store of value. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Gold futures may trade lower today amid caution ahead of US jobs data. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,349 per 10 grams, down by 0.48 per cent, after opening at Rs. 26,472, against the previous closing price of Rs 26,477. It touched an intra-day low of Rs 26,260.
05/12/2014 09:30
Gold futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal after the European Central Bank (ECB) said that it will not consider bullion purchases. The ECB, which refrained from further easing measures on Thursday, said that it discussed buying all assets expect bullion and will reassess stimulus early next year. The ECB cut its inflation forecast to 0.5 per cent in 2014 from 1.1 per cent predicted a year earlier, dimming the appeal of gold as a hedge against inflation. A dip in US jobless claims boosted the dollar, curbing the appetite for gold as an alternative asset while raising bets of earlier than expected US monetary tightening, weighing on the demand for gold as a store of value. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Gold futures may trade lower today amid caution ahead of US jobs data. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,349 per 10 grams, down by 0.48 per cent, after opening at Rs. 26,472, against the previous closing price of Rs 26,477. It touched an intra-day low of Rs 26,260.
