Bullion advances as investors asses Fed rate
outlook
13/01/2015 09:49
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a decline in equities boosted the demand for the bullion as an alternative asset amid a deepening rout in oil which slid to the lowest level in more than five and a half years, curbing demand for risky assets and prompting investors to seek shelter in safe haven investments.
Plunging oil prices also threaten to push US inflation further below the US Federal Reserve’s 2 per cent target, holding back the central bank from raising interest rates for the first time since 2006, bolstering the demand for gold as a store of value.
Federal Reserve Bank of San Francisco President John Williams said that a rate hike in June would be a close decision amid strong labour market momentum and soft wage gains. While the US economy added over 200K jobs in December for an eleventh straight month, wages fell for the first time since 2006.
Gold may continue the upward journey today on bets that the Fed may not tighten policy in the near-tern.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,030 per 10 gram, up by 0.86 per cent after opening at Rs 26,875, against the previous closing price of Rs 26,800 It touched the intra-day high of Rs 27,114 till the closing.
13/01/2015 09:49
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a decline in equities boosted the demand for the bullion as an alternative asset amid a deepening rout in oil which slid to the lowest level in more than five and a half years, curbing demand for risky assets and prompting investors to seek shelter in safe haven investments.
Plunging oil prices also threaten to push US inflation further below the US Federal Reserve’s 2 per cent target, holding back the central bank from raising interest rates for the first time since 2006, bolstering the demand for gold as a store of value.
Federal Reserve Bank of San Francisco President John Williams said that a rate hike in June would be a close decision amid strong labour market momentum and soft wage gains. While the US economy added over 200K jobs in December for an eleventh straight month, wages fell for the first time since 2006.
Gold may continue the upward journey today on bets that the Fed may not tighten policy in the near-tern.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,030 per 10 gram, up by 0.86 per cent after opening at Rs 26,875, against the previous closing price of Rs 26,800 It touched the intra-day high of Rs 27,114 till the closing.
