Safe haven appeal lifts Bullion
16/12/2014 09:05
Gold futures ended higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a global stock market rout amid a slump in oil prices to five-year lows boosted the safe haven demand for the bullion.
Against the backdrop of a freefall in oil prices which have raised concerns over the health of the global economy, investors are shunning risky assets and flocking to the safety of precious metals.
Speculation that the US Federal Reserve this week may retain its pledge of keeping interest rates at low levels for a “considerable time” also supported the demand for gold as a store of value. The plunge in oil prices may make it more difficult for the Fed to reach its 2 per cent inflation goal, boosting the case for loose monetary policy for a while yet.
Gold futures may fall today as a stronger dollar curbs demand for the yellow metal as an alternative asset.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,320 per 10 grams, up by 0.41 per cent, after opening at Rs. 27,155 against the previous closing price of Rs 27,209. It touched an intra-day high of Rs 27,500
16/12/2014 09:05
Gold futures ended higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a global stock market rout amid a slump in oil prices to five-year lows boosted the safe haven demand for the bullion.
Against the backdrop of a freefall in oil prices which have raised concerns over the health of the global economy, investors are shunning risky assets and flocking to the safety of precious metals.
Speculation that the US Federal Reserve this week may retain its pledge of keeping interest rates at low levels for a “considerable time” also supported the demand for gold as a store of value. The plunge in oil prices may make it more difficult for the Fed to reach its 2 per cent inflation goal, boosting the case for loose monetary policy for a while yet.
Gold futures may fall today as a stronger dollar curbs demand for the yellow metal as an alternative asset.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,320 per 10 grams, up by 0.41 per cent, after opening at Rs. 27,155 against the previous closing price of Rs 27,209. It touched an intra-day high of Rs 27,500
