Upbeat US economic outlook weighs on Bullion
26/12/2014 09:51
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as better than expected US jobless claims data signaled faster progress in the labour market of the world’s biggest economy, bolstering the case for the US Federal Reserve to tighten monetary policy next year, dimming the appeal of the bullion as a store of value.
Jobless claims in the US fell to the lowest level since early November last week.
A stronger dollar, which is at the highest level in nearly five years curbed demand for the precious metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Meanwhile, holdings in bullion-backed exchange traded products have slumped to the lowest level since September 2008, signaling weak investment demand for gold.
Gold futures may rebound today as the recent losses in the precious metal spur physical demand.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,584 per 10 gram, down by 0.15 per cent after opening at Rs 26,587, against the previous closing price of Rs 26,625. It touched the intra-day low of Rs 26,555 till the closing.
26/12/2014 09:51
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as better than expected US jobless claims data signaled faster progress in the labour market of the world’s biggest economy, bolstering the case for the US Federal Reserve to tighten monetary policy next year, dimming the appeal of the bullion as a store of value.
Jobless claims in the US fell to the lowest level since early November last week.
A stronger dollar, which is at the highest level in nearly five years curbed demand for the precious metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Meanwhile, holdings in bullion-backed exchange traded products have slumped to the lowest level since September 2008, signaling weak investment demand for gold.
Gold futures may rebound today as the recent losses in the precious metal spur physical demand.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,584 per 10 gram, down by 0.15 per cent after opening at Rs 26,587, against the previous closing price of Rs 26,625. It touched the intra-day low of Rs 26,555 till the closing.
