Oil rally, safe haven demand lifts bullion
02/12/2014 09:40
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a sharp rebound in oil prices from a five-year low eased concerns over weaker inflation in the global economy, boosting the demand for the yellow metal as a hedge against rising prices.
Investors cast aside the verdict of Swiss voters to reject a plan that would have required the country’s central bank to hold a portion of its reserves in bullion.
A reduction in Japan’s sovereign credit rating and a dip in US holiday spending signaled a deepening global slowdown, fueling safe haven bets for the precious metal. US retail sales in the four-day Thanksgiving weekend plunged by 11 per cent to USD 50.9 billion from USD 57.4 billion in the same period of 2013. Moody’s cut the rating of the world’s third biggest economy, Japan by one notch to A1.
Gold futures may continue the upward journey today as weakness in global manufacturing fuels safe haven inflows.
Gold futures for December 2014 contract, at MCX, closed at Rs. 26,509 per 10 grams, up by 2.8 per cent, after opening at Rs. 25,401, against the previous closing price of Rs 25,794. It touched an intra-day high of Rs 26,556.
02/12/2014 09:40
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a sharp rebound in oil prices from a five-year low eased concerns over weaker inflation in the global economy, boosting the demand for the yellow metal as a hedge against rising prices.
Investors cast aside the verdict of Swiss voters to reject a plan that would have required the country’s central bank to hold a portion of its reserves in bullion.
A reduction in Japan’s sovereign credit rating and a dip in US holiday spending signaled a deepening global slowdown, fueling safe haven bets for the precious metal. US retail sales in the four-day Thanksgiving weekend plunged by 11 per cent to USD 50.9 billion from USD 57.4 billion in the same period of 2013. Moody’s cut the rating of the world’s third biggest economy, Japan by one notch to A1.
Gold futures may continue the upward journey today as weakness in global manufacturing fuels safe haven inflows.
Gold futures for December 2014 contract, at MCX, closed at Rs. 26,509 per 10 grams, up by 2.8 per cent, after opening at Rs. 25,401, against the previous closing price of Rs 25,794. It touched an intra-day high of Rs 26,556.
