Yellow metal rides on ECB bets
21/01/2015 09:18
Gold futures ended higher in the domestic and overseas market on Tuesday as investors and speculators booked fresh positions in the precious metal as assets in bullion-backed exchange traded products rose for a third straight day, signaling a pickup in investment demand for gold on bets of global easy money policies to support the world economy. Holdings in the SPDR Trust, the biggest gold-backed exchange traded product (ETP) rose for a third day to 742.24 metric tons on Tuesday, the longest winning streak since December 11, 2014. Meanwhile, the European Central Bank (ECB) is likely to announce a bond buying program of probably 550 billion euro tomorrow in a bid to stave off the threat of deflation faced by the 19-member Euro area economy, bolstering the appeal of gold which is a hedge against the inflationary risk of monetary stimulus. Gold futures may extend a rally today on bets of ECB QE. At the MCX, Gold futures for February 2015 contract closed at Rs 28,085 per 10 gram, down by 1.39 per cent after opening at Rs 27,730, against the previous closing price of Rs 27,700. It touched the intra-day high of Rs 28,140 till the closing.
21/01/2015 09:18
Gold futures ended higher in the domestic and overseas market on Tuesday as investors and speculators booked fresh positions in the precious metal as assets in bullion-backed exchange traded products rose for a third straight day, signaling a pickup in investment demand for gold on bets of global easy money policies to support the world economy. Holdings in the SPDR Trust, the biggest gold-backed exchange traded product (ETP) rose for a third day to 742.24 metric tons on Tuesday, the longest winning streak since December 11, 2014. Meanwhile, the European Central Bank (ECB) is likely to announce a bond buying program of probably 550 billion euro tomorrow in a bid to stave off the threat of deflation faced by the 19-member Euro area economy, bolstering the appeal of gold which is a hedge against the inflationary risk of monetary stimulus. Gold futures may extend a rally today on bets of ECB QE. At the MCX, Gold futures for February 2015 contract closed at Rs 28,085 per 10 gram, down by 1.39 per cent after opening at Rs 27,730, against the previous closing price of Rs 27,700. It touched the intra-day high of Rs 28,140 till the closing.
