Greek jitters boost bullion on safe haven appeal
06/01/2015 09:11
Gold futures surged in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as fears that Greece may exit the 18-member Euro area boosted the safe haven demand for the yellow metal.
Greece is facing snap elections this month, raising fears that a victory for anti-austerity parties may put its bailout program in jeopardy, causing it to default and exit the currency union, an event that may trigger fresh Euro area financial contagion.
A sell-off in equities boosted the demand for gold as an alternative asset.
Federal Reserve San Francisco President John Williams stressed that the Fed should not raise interest rates too soon to continue supporting the US economy, bolstering the appeal of the bullion as a store of value.
Gold futures may continue the upward journey on rising safe haven demand on Greek jitters.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,038 per 10 gram, up by 1.15 per cent after opening at Rs 26,815, against the previous closing price of Rs 26,730. It touched the intra-day high of Rs 27,079 till the closing.
06/01/2015 09:11
Gold futures surged in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as fears that Greece may exit the 18-member Euro area boosted the safe haven demand for the yellow metal.
Greece is facing snap elections this month, raising fears that a victory for anti-austerity parties may put its bailout program in jeopardy, causing it to default and exit the currency union, an event that may trigger fresh Euro area financial contagion.
A sell-off in equities boosted the demand for gold as an alternative asset.
Federal Reserve San Francisco President John Williams stressed that the Fed should not raise interest rates too soon to continue supporting the US economy, bolstering the appeal of the bullion as a store of value.
Gold futures may continue the upward journey on rising safe haven demand on Greek jitters.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,038 per 10 gram, up by 1.15 per cent after opening at Rs 26,815, against the previous closing price of Rs 26,730. It touched the intra-day high of Rs 27,079 till the closing.
