China easing, Greek jitters boost Bullion
05/02/2015 09:25
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) tightened the terms of Greece’s bailout, adding pressure on the Mediterranean nation’s new government which is diverging from an austerity path, raising fears over the country’s exit from the currency union which may spark a fresh financial contagion in Europe, boosting the safe haven demand for the bullion.
The ECB restricted access to direct liquidity lines amid concerns over Greece’s commitment to existing bailout packages.
China’s central bank cut the reserve requirements for lenders by 50 basis points, the first such reduction since 2012, in a bid to lift growth in the world’s second biggest economy, bolstering the appeal of Gold, which is a hedge against the inflationary risk of monetary stimulus.
Gold may continue its advance today on rising safe haven demand amid Europe fears while investor eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,729 per 10 gram, up by 0.84 per cent after opening at Rs 27,560, against the previous closing price of Rs 27,498. It touched the intra-day high of Rs 27,815 till the closing.
05/02/2015 09:25
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) tightened the terms of Greece’s bailout, adding pressure on the Mediterranean nation’s new government which is diverging from an austerity path, raising fears over the country’s exit from the currency union which may spark a fresh financial contagion in Europe, boosting the safe haven demand for the bullion.
The ECB restricted access to direct liquidity lines amid concerns over Greece’s commitment to existing bailout packages.
China’s central bank cut the reserve requirements for lenders by 50 basis points, the first such reduction since 2012, in a bid to lift growth in the world’s second biggest economy, bolstering the appeal of Gold, which is a hedge against the inflationary risk of monetary stimulus.
Gold may continue its advance today on rising safe haven demand amid Europe fears while investor eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,729 per 10 gram, up by 0.84 per cent after opening at Rs 27,560, against the previous closing price of Rs 27,498. It touched the intra-day high of Rs 27,815 till the closing.
