Yellow metal regains sheen on dollar slump
10/12/2014 09:34
Gold futures surged in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the overseas market as a slump in the US dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. A bearish trend across most global equity markets also boosted the lure for gold as an alternative investment. Meanwhile, speculation has risen that the US Federal Reserve may put off an interest rate hike in the near-term as a slump in energy prices threatens to undermine the ability of the Fed to reach the 2 per cent inflation goal. Delayed monetary tightening will benefit gold, boosting the appeal of the bullion as a store of value. Gold futures may fall today as investors book profits after yesterday’s sharp gains. Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,159 per 10 grams, up by 3.03 per cent, after opening at Rs. 26,400, against the previous closing price of Rs 26,361. It touched an intra-day high of Rs 27,280.
10/12/2014 09:34
Gold futures surged in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the overseas market as a slump in the US dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. A bearish trend across most global equity markets also boosted the lure for gold as an alternative investment. Meanwhile, speculation has risen that the US Federal Reserve may put off an interest rate hike in the near-term as a slump in energy prices threatens to undermine the ability of the Fed to reach the 2 per cent inflation goal. Delayed monetary tightening will benefit gold, boosting the appeal of the bullion as a store of value. Gold futures may fall today as investors book profits after yesterday’s sharp gains. Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,159 per 10 grams, up by 3.03 per cent, after opening at Rs. 26,400, against the previous closing price of Rs 26,361. It touched an intra-day high of Rs 27,280.
