Safe haven appeal lifts Bullion
20/01/2015 09:32
Gold futures closed on a bullish note in the domestic market on Monday, reaching a four-month high in the overseas market as investors and speculators booked fresh positions in the precious metal after the Swiss National Bank’s (SNB) surprise move to end the cap on the franc, allowing it to move freely against the euro boosted the safe have demand for the yellow metal as investor shed exposure to risky assets.
Plunging US consumer prices raised bets that the US Federal Reserve may delay a planned interest rate hike, bolstering the appeal of the bullion as a store of value.
Federal Reserve Bank of San Francisco President John Williams stressed little urgency to raise interest rates in the near-term as inflation stays far from the 2 per cent goal.
However, a stronger dollar curbed demand for the bullion as an alternative asset, trimming gains. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold futures may rise today amid hopes that the European Central Bank (ECB) may unveil a sovereign bond buying program this week.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,700 per 10 gram, up by 0.17 per cent after opening at Rs 27,650, against the previous closing price of Rs 27,654. It touched the intra-day high of Rs 27,770 till the closing.
20/01/2015 09:32
Gold futures closed on a bullish note in the domestic market on Monday, reaching a four-month high in the overseas market as investors and speculators booked fresh positions in the precious metal after the Swiss National Bank’s (SNB) surprise move to end the cap on the franc, allowing it to move freely against the euro boosted the safe have demand for the yellow metal as investor shed exposure to risky assets.
Plunging US consumer prices raised bets that the US Federal Reserve may delay a planned interest rate hike, bolstering the appeal of the bullion as a store of value.
Federal Reserve Bank of San Francisco President John Williams stressed little urgency to raise interest rates in the near-term as inflation stays far from the 2 per cent goal.
However, a stronger dollar curbed demand for the bullion as an alternative asset, trimming gains. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold futures may rise today amid hopes that the European Central Bank (ECB) may unveil a sovereign bond buying program this week.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,700 per 10 gram, up by 0.17 per cent after opening at Rs 27,650, against the previous closing price of Rs 27,654. It touched the intra-day high of Rs 27,770 till the closing.
