Gold closes lower on weak global cues
12/01/2015 09:16
Gold futures tumbled in the domestic market on Friday as data on U.S. initial jobless claims released pointed to an ongoing recovery in the labor market. The Department of Labor reported that initial jobless claims fell by 4,000 to 294,000 last week, just slightly above expectations of 290,000. The report came a day after data showed that the U.S. private sector added a larger-than-forecast 241,000 jobs in December. The upbeat data boosted the outlook for the U.S. recovery and raised expectations for a strong reading of the government nonfarm payrolls due later Friday. The upbeat US data will force the Federal Reserve to start raising interest rates sooner and faster than previously thought. Higher U.S. interest rates would boost the greenback and weigh on gold. However, a weaker dollar raised the appeal of the bullion as an alternative asset. Weaker dollar makes the precious metal cheaper for those holding other currencies, thus raising demand. Gold futures may fall today due to the recent upbeat US jobs data which may determine the outlook for borrowing costs. At the MCX, Gold futures for February 2015 contract closed at Rs 26,800 per 10 gram, down by 0.003 per cent after opening at Rs 27,778, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,668 till the closing.
12/01/2015 09:16
Gold futures tumbled in the domestic market on Friday as data on U.S. initial jobless claims released pointed to an ongoing recovery in the labor market. The Department of Labor reported that initial jobless claims fell by 4,000 to 294,000 last week, just slightly above expectations of 290,000. The report came a day after data showed that the U.S. private sector added a larger-than-forecast 241,000 jobs in December. The upbeat data boosted the outlook for the U.S. recovery and raised expectations for a strong reading of the government nonfarm payrolls due later Friday. The upbeat US data will force the Federal Reserve to start raising interest rates sooner and faster than previously thought. Higher U.S. interest rates would boost the greenback and weigh on gold. However, a weaker dollar raised the appeal of the bullion as an alternative asset. Weaker dollar makes the precious metal cheaper for those holding other currencies, thus raising demand. Gold futures may fall today due to the recent upbeat US jobs data which may determine the outlook for borrowing costs. At the MCX, Gold futures for February 2015 contract closed at Rs 26,800 per 10 gram, down by 0.003 per cent after opening at Rs 27,778, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,668 till the closing.