Gold closes lower on weak global cues
03/12/2014 09:55
Gold futures closed lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal as upbeat US factory data signaled underlying strength in the world’s biggest economy despite a global slowdown, raising bets that the US Federal Reserve may move ahead with monetary tightening next year, dimming the appeal of gold as a store of value. The US ISM Manufacturing PMI expanded at the second highest level since April 2011 at 58.7 in November, with a reading above 50 signaling expansion. Top US Federal Reserve officials stressed that plunging oil prices will lift growth in the US economy by boosting spending. Sentiment weakened further after the dollar firmed on news that U.S. construction activity saw an uptick in November, which boosted demand for the dollar. The Census Bureau reported earlier that U.S. construction spending rose 1.1 per cent in October from a month earlier, beating market estimates for a 0.6 per cent gain after a 0.1 per cent contraction in September. Gold futures may decline today due to gains in the greenback. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,188 per 10 grams, down by 1.21 per cent, after opening at Rs. 26,314, against the previous closing price of Rs 26,509. It touched an intra-day low of Rs 26,057.
03/12/2014 09:55
Gold futures closed lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal as upbeat US factory data signaled underlying strength in the world’s biggest economy despite a global slowdown, raising bets that the US Federal Reserve may move ahead with monetary tightening next year, dimming the appeal of gold as a store of value. The US ISM Manufacturing PMI expanded at the second highest level since April 2011 at 58.7 in November, with a reading above 50 signaling expansion. Top US Federal Reserve officials stressed that plunging oil prices will lift growth in the US economy by boosting spending. Sentiment weakened further after the dollar firmed on news that U.S. construction activity saw an uptick in November, which boosted demand for the dollar. The Census Bureau reported earlier that U.S. construction spending rose 1.1 per cent in October from a month earlier, beating market estimates for a 0.6 per cent gain after a 0.1 per cent contraction in September. Gold futures may decline today due to gains in the greenback. Gold futures for December 2014 contract, at MCX, closed at Rs. 26,188 per 10 grams, down by 1.21 per cent, after opening at Rs. 26,314, against the previous closing price of Rs 26,509. It touched an intra-day low of Rs 26,057.
