Gold dips on strong dollar
02/01/2015 12:13
Gold futures fell in the domestic market on Friday as the freefall in oil prices has hit the demand for gold as a hedge against inflation. However, the resurfacing of Greek problems and a global slowdown may support the precious metal’s demand as a safe haven asset, cushioning the dip in the yellow metal’s prices. Further, a stronger dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. At the MCX, Gold futures for February 2015 contract was trading at Rs 26,685 per 10 gram, down by 0.06 per cent after opening at Rs 26,740, against the previous closing price of Rs 26,700. It touched the intra-day high of Rs 26,642 till the trading. (At 11.58 AM today).
02/01/2015 12:13
Gold futures fell in the domestic market on Friday as the freefall in oil prices has hit the demand for gold as a hedge against inflation. However, the resurfacing of Greek problems and a global slowdown may support the precious metal’s demand as a safe haven asset, cushioning the dip in the yellow metal’s prices. Further, a stronger dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. At the MCX, Gold futures for February 2015 contract was trading at Rs 26,685 per 10 gram, down by 0.06 per cent after opening at Rs 26,740, against the previous closing price of Rs 26,700. It touched the intra-day high of Rs 26,642 till the trading. (At 11.58 AM today).
