Stronger dollar curbs Gold’s sheen
30/12/2014 09:37
Gold futures fell in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a stronger US dollar which rose to the highest level in more than five years, curbed the demand for the bullion as an alternative asset.
Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Holdings in the SPDR Gold Trust, the biggest gold-backed exchange traded product (ETP) fell 0.6 per cent last week to the lowest level since 2009, signaling weak investment demand for the bullion.
Speculation that the US Federal Reserve may hike interest rates in 2015 has heighted after the economy grew the most in eleven years last quarter while jobless claims fell to a seven-week low last week, dimming the appeal of the bullion as a store of value.
Gold futures may rise today as a dip in equities boosts demand for the yellow metal as an alternative asset.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,764 per 10 gram, down by 1.14 per cent after opening at Rs 27,031, against the previous closing price of Rs 27,073. It touched the intra-day low of Rs 26,725 till the closing
30/12/2014 09:37
Gold futures fell in the domestic market on Monday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a stronger US dollar which rose to the highest level in more than five years, curbed the demand for the bullion as an alternative asset.
Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Holdings in the SPDR Gold Trust, the biggest gold-backed exchange traded product (ETP) fell 0.6 per cent last week to the lowest level since 2009, signaling weak investment demand for the bullion.
Speculation that the US Federal Reserve may hike interest rates in 2015 has heighted after the economy grew the most in eleven years last quarter while jobless claims fell to a seven-week low last week, dimming the appeal of the bullion as a store of value.
Gold futures may rise today as a dip in equities boosts demand for the yellow metal as an alternative asset.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,764 per 10 gram, down by 1.14 per cent after opening at Rs 27,031, against the previous closing price of Rs 27,073. It touched the intra-day low of Rs 26,725 till the closing
