Stronger greenback weighs on Gold
27/01/2015 09:19
Gold futures closed lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Further, caution ahead of the Greek mandate which was set to dictate the country’s future in the currency union and the two-day meeting of the US Federal Reserve beginning on Tuesday weighed on sentiment.
The Fed may stick to its ultra accommodative monetary policy as plunging crude prices threaten to push inflation further below the 2 per cent goal, bolstering the appeal of the bullion as a store of value.
Gold futures may trade lower today after European finance ministers said that they are willing to work with Greece’s new government as long as the government doesn’t request a debt writedown and force the country out of the euro, dimming safe haven demand for the bullion. The anti-austerity Syriza Party won Sunday’s Greek mandate.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,864 per 10 gram, down by 0.61 per cent after opening at Rs 28,010, against the previous closing price of Rs 28,036. It touched the intra-day low of Rs 27,791 till the closing
27/01/2015 09:19
Gold futures closed lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Further, caution ahead of the Greek mandate which was set to dictate the country’s future in the currency union and the two-day meeting of the US Federal Reserve beginning on Tuesday weighed on sentiment.
The Fed may stick to its ultra accommodative monetary policy as plunging crude prices threaten to push inflation further below the 2 per cent goal, bolstering the appeal of the bullion as a store of value.
Gold futures may trade lower today after European finance ministers said that they are willing to work with Greece’s new government as long as the government doesn’t request a debt writedown and force the country out of the euro, dimming safe haven demand for the bullion. The anti-austerity Syriza Party won Sunday’s Greek mandate.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,864 per 10 gram, down by 0.61 per cent after opening at Rs 28,010, against the previous closing price of Rs 28,036. It touched the intra-day low of Rs 27,791 till the closing
