Fed rate bets lift Bullion
15/01/2015 09:28
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a drop in equities boosted the demand for the yellow metal as an alternative investment.
Further, a slowdown in the global economy following a reduction in global growth forecasts and worries over a Greek exit from the Euro area amidst the January 25 elections in the country boosted the safe haven appeal of the precious metal.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China.
The biggest drop in US retail sales in nearly a year in December signaled a faltering recovery in the world’s biggest economy, fueling bets that the US Federal Reserve may refrain from raising interest rates in the near-term, bolstering the appeal of the bullion as a store of value.
A drop in oil prices to over a five and a half-year lows, coupled with a surprise dip in December wages has also signaled weaker US inflation in the coming months, bolstering the case for the Fed to keep its easy money policy intact in the near-term.
Gold futures may trade little changed today as investors eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,201 per 10 gram, up by 0.54 per cent after opening at Rs 27,020, against the previous closing price of Rs 27,055. It touched the intra-day high of Rs 27,260 till the closing.
15/01/2015 09:28
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a drop in equities boosted the demand for the yellow metal as an alternative investment.
Further, a slowdown in the global economy following a reduction in global growth forecasts and worries over a Greek exit from the Euro area amidst the January 25 elections in the country boosted the safe haven appeal of the precious metal.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China.
The biggest drop in US retail sales in nearly a year in December signaled a faltering recovery in the world’s biggest economy, fueling bets that the US Federal Reserve may refrain from raising interest rates in the near-term, bolstering the appeal of the bullion as a store of value.
A drop in oil prices to over a five and a half-year lows, coupled with a surprise dip in December wages has also signaled weaker US inflation in the coming months, bolstering the case for the Fed to keep its easy money policy intact in the near-term.
Gold futures may trade little changed today as investors eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,201 per 10 gram, up by 0.54 per cent after opening at Rs 27,020, against the previous closing price of Rs 27,055. It touched the intra-day high of Rs 27,260 till the closing.
