Bullion dips as Ukraine accord dims safe haven
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13/02/2015 09:26
Gold futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal as a cease-fire accord in Ukraine eased geopolitical concerns, dimming safe haven demand for the bullion, while a surge in equities dampened the demand for gold as an alternative asset. Ukrainian President Petro Poroshenko, Russian President Vladimir Putin and French and German leaders at a peace summit on Thursday struck a pact over a cease-fire in a bid to end the conflict that has devastated eastern Ukraine. Greek officials and Euro area finance officials will resume talks on Friday as the two parties look to come to some sort of an agreement over terms required for an extension of the country’s bailout program. A weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the precious metal. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may rebound today as a drop in US retail sales signaled doubts over the country’s economic recovery, boosting safe haven demand for gold. At the MCX, Gold futures for April 2015 contract closed at Rs 26,519 per 10 gram, down by 0.55 per cent after opening at Rs 26,609, against the previous closing price of Rs 26,665 It touched the intra-day low of Rs 26,508 till the closing.
13/02/2015 09:26
Gold futures ended lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal as a cease-fire accord in Ukraine eased geopolitical concerns, dimming safe haven demand for the bullion, while a surge in equities dampened the demand for gold as an alternative asset. Ukrainian President Petro Poroshenko, Russian President Vladimir Putin and French and German leaders at a peace summit on Thursday struck a pact over a cease-fire in a bid to end the conflict that has devastated eastern Ukraine. Greek officials and Euro area finance officials will resume talks on Friday as the two parties look to come to some sort of an agreement over terms required for an extension of the country’s bailout program. A weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the precious metal. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may rebound today as a drop in US retail sales signaled doubts over the country’s economic recovery, boosting safe haven demand for gold. At the MCX, Gold futures for April 2015 contract closed at Rs 26,519 per 10 gram, down by 0.55 per cent after opening at Rs 26,609, against the previous closing price of Rs 26,665 It touched the intra-day low of Rs 26,508 till the closing.
