Fed hopes push Bullion higher
28/01/2015 09:32
Gold futures closed higher in the domestic and overseas market on Tuesday as a weaker dollar boosted the appeal of the precious metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Further, hopes that the US Federal Reserve may continue to stick to record low interest rates at a policy announcement on Wednesday as faltering global growth threatens to weigh on the US economy while plunging oil prices push inflation further below the 2 per cent target, may bolstering the appeal of the yellow metal as a store of value. The Fed in December indicated that it may not raise borrowing costs until at least end April.
A surprise drop in US durable goods orders last month and the weakest growth in manufacturing activity in a year in January signaled a slowdown in American factories.
Gold may advance today as the Fed likely refrains from a rate hike.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,902 per 10 gram, up by 0.14 per cent after opening at Rs 27,765, against the previous closing price of Rs 27,864. It touched the intra-day high of Rs 27,988 till the closing.
28/01/2015 09:32
Gold futures closed higher in the domestic and overseas market on Tuesday as a weaker dollar boosted the appeal of the precious metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Further, hopes that the US Federal Reserve may continue to stick to record low interest rates at a policy announcement on Wednesday as faltering global growth threatens to weigh on the US economy while plunging oil prices push inflation further below the 2 per cent target, may bolstering the appeal of the yellow metal as a store of value. The Fed in December indicated that it may not raise borrowing costs until at least end April.
A surprise drop in US durable goods orders last month and the weakest growth in manufacturing activity in a year in January signaled a slowdown in American factories.
Gold may advance today as the Fed likely refrains from a rate hike.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,902 per 10 gram, up by 0.14 per cent after opening at Rs 27,765, against the previous closing price of Rs 27,864. It touched the intra-day high of Rs 27,988 till the closing.
