Tepid inflation hits Bullion
01/12/2014 09:26
Gold futures tumbled in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a plunge in oil prices following the OPEC’s decision to refrain from a production cut signaled weaker global inflation, dimming the bullion’s appeal as a hedge against rising prices. Meanwhile, annual inflation in the Euro area fell to the lowest level in five years as consumer prices rose by 0.3 per cent in November 2014 from the same month a year ago following a 0.4 per cent gain in October 2014. Stronger dollar curbed the demand for the yellow metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. The dollar marched to a five-year high against its major counterparts amid hopes that lower energy prices may boost the US economy. Gold futures may fall today after Swiss voters rejected a plan for the country’s central bank to boost bullion reserves. Gold futures for December 2014 contract, at MCX, closed at Rs. 25,794 per 10 grams, down by 1.73 per cent, after opening at Rs. 26,155, against the previous closing price of Rs 26,247. It touched an intra-day low of Rs 25,741.
01/12/2014 09:26
Gold futures tumbled in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a plunge in oil prices following the OPEC’s decision to refrain from a production cut signaled weaker global inflation, dimming the bullion’s appeal as a hedge against rising prices. Meanwhile, annual inflation in the Euro area fell to the lowest level in five years as consumer prices rose by 0.3 per cent in November 2014 from the same month a year ago following a 0.4 per cent gain in October 2014. Stronger dollar curbed the demand for the yellow metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. The dollar marched to a five-year high against its major counterparts amid hopes that lower energy prices may boost the US economy. Gold futures may fall today after Swiss voters rejected a plan for the country’s central bank to boost bullion reserves. Gold futures for December 2014 contract, at MCX, closed at Rs. 25,794 per 10 grams, down by 1.73 per cent, after opening at Rs. 26,155, against the previous closing price of Rs 26,247. It touched an intra-day low of Rs 25,741.
