Gold drops on weak global cues
16/01/2015 12:32
Gold prices fell by 0.19 per cent on Friday at the domestic markets as a result of shifting sentiment on the dollar and the timing for a rate hike as widely expected by the Federal Reserve later this year. Further, New York Federal Reserve’s index of manufacturing conditions improved at a faster rate than expected in January, easing concerns over the strength of the economy suggesting that the Federal Reserve may raise interest rates as increasing interest rates doesn’t bode too well for gold prices. Gold futures for February 2015 contract, at MCX, were trading at Rs. 27,439 per 10 grams, down by 0.19 per cent after opening at Rs. 27,525 against the previous closing price of Rs. 27,492. It touched the intra-day low of Rs. 27,402 till the trading. (At 11.57 AM today).
However, 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.
16/01/2015 12:32
Gold prices fell by 0.19 per cent on Friday at the domestic markets as a result of shifting sentiment on the dollar and the timing for a rate hike as widely expected by the Federal Reserve later this year. Further, New York Federal Reserve’s index of manufacturing conditions improved at a faster rate than expected in January, easing concerns over the strength of the economy suggesting that the Federal Reserve may raise interest rates as increasing interest rates doesn’t bode too well for gold prices. Gold futures for February 2015 contract, at MCX, were trading at Rs. 27,439 per 10 grams, down by 0.19 per cent after opening at Rs. 27,525 against the previous closing price of Rs. 27,492. It touched the intra-day low of Rs. 27,402 till the trading. (At 11.57 AM today).
However, 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.
