Bullion plunges on China demand fears
18/02/2015 09:39
Gold futures closed on a bearish note in the domestic market on Tuesday as investors and speculators exited positions in the precious metal amid concerns over waning demand from China, the world’s second biggest gold buyer, during the Lunar New Year holiday. Markets in China will be shut for five sessions starting Wednesday. Record high US equities curbed the demand for Gold as an alternative asset. Philadelphia Federal Reserve President Charles Plosser urged the Fed to ignore the temporary drop in oil prices and low inflation, a sign that monetary tightening in the world’s biggest economy isn’t too far away, dimming the appeal of the bullion as a store of value. All eyes are on Greece with investors hoping for a possible last minute deal between the country’s new anti-austerity government and its international creditors to avoid a funding crunch and stay in the euro. Talks between Greek and Euro area finance officials stalled on Monday after an official from the country’s new anti- austerity government disapproved the Euro area’s proposed bailout extension conditions. Gold may continue the downward journey amid speculation of weak China demand. At the MCX, Gold futures for April 2015 contract closed at Rs 26,219 per 10 gram, down by 1.82 per cent after opening at Rs 26,650, against the previous closing price of Rs 26,704. It touched the intra-day low of Rs 26,182 till the closing.
18/02/2015 09:39
Gold futures closed on a bearish note in the domestic market on Tuesday as investors and speculators exited positions in the precious metal amid concerns over waning demand from China, the world’s second biggest gold buyer, during the Lunar New Year holiday. Markets in China will be shut for five sessions starting Wednesday. Record high US equities curbed the demand for Gold as an alternative asset. Philadelphia Federal Reserve President Charles Plosser urged the Fed to ignore the temporary drop in oil prices and low inflation, a sign that monetary tightening in the world’s biggest economy isn’t too far away, dimming the appeal of the bullion as a store of value. All eyes are on Greece with investors hoping for a possible last minute deal between the country’s new anti-austerity government and its international creditors to avoid a funding crunch and stay in the euro. Talks between Greek and Euro area finance officials stalled on Monday after an official from the country’s new anti- austerity government disapproved the Euro area’s proposed bailout extension conditions. Gold may continue the downward journey amid speculation of weak China demand. At the MCX, Gold futures for April 2015 contract closed at Rs 26,219 per 10 gram, down by 1.82 per cent after opening at Rs 26,650, against the previous closing price of Rs 26,704. It touched the intra-day low of Rs 26,182 till the closing.
