Swiss National Bank’s move boosts Bullion
16/01/2015 09:38
Gold futures surged in the domestic and overseas market on Thursday as investors and speculators booked fresh positions in the precious metal as the Swiss National Bank’s (SNB) decision to suddenly scrap its commitment to keep the franc above 1.20 per euro led a flight to safe haven assets. The SNB scrapped a three-year policy of capping the Swiss franc against the euro which was aimed at shielding the country’s economy from the region’s sovereign debt crises. A weaker dollar boosted the demand for the yellow metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand. US wholesale prices plunged the most in three years in December 2014 amid a slump in fuel costs, raising bets that the US Federal Reserve may refrain from an interest rate hike in the near-term, bolstering the appeal of the yellow metal as a store of value. US wholesale pieces fell 0.3 per cent in December from the previous month, the biggest decline since October 2011. Gold may rise today as assets in bullion-backed exchange traded products surged amid robust safe haven demand. At the MCX, Gold futures for February 2015 contract closed at Rs 27,492 per 10 gram, up by 1.07 per cent after opening at Rs 27,066, against the previous closing price of Rs 27,201. It touched the intra-day high of Rs 27,546 till the closing.
16/01/2015 09:38
Gold futures surged in the domestic and overseas market on Thursday as investors and speculators booked fresh positions in the precious metal as the Swiss National Bank’s (SNB) decision to suddenly scrap its commitment to keep the franc above 1.20 per euro led a flight to safe haven assets. The SNB scrapped a three-year policy of capping the Swiss franc against the euro which was aimed at shielding the country’s economy from the region’s sovereign debt crises. A weaker dollar boosted the demand for the yellow metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand. US wholesale prices plunged the most in three years in December 2014 amid a slump in fuel costs, raising bets that the US Federal Reserve may refrain from an interest rate hike in the near-term, bolstering the appeal of the yellow metal as a store of value. US wholesale pieces fell 0.3 per cent in December from the previous month, the biggest decline since October 2011. Gold may rise today as assets in bullion-backed exchange traded products surged amid robust safe haven demand. At the MCX, Gold futures for February 2015 contract closed at Rs 27,492 per 10 gram, up by 1.07 per cent after opening at Rs 27,066, against the previous closing price of Rs 27,201. It touched the intra-day high of Rs 27,546 till the closing.
