Easing Greek fears pull down Gold
19/02/2015 09:38
Gold futures closed lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the precious metal as fears that Greece may exit the euro eased, dimming the safe haven demand for the bullion.
Speculation is rife that Greece and its international creditors will soon reach a debt compromise to extend the country’s bailout accord, enabling Greece to avert a funding crunch and averting an exit from the monetary union.
Greece was set to submit a request for a six-month loan extension to the Euro area.
The biggest drop in US producer prices since November 2009 in January 2015 signaled weakening inflation in the world’s biggest economy, boosting the case for the US Federal Reserve to stay put on low interest rates for the time being, bolstering the appeal of the bullion as a store of value, trimming losses in the bullion.
US wholesale prices fell 0.8 per cent in January from the previous month when they declined 0.2 per cent.
Gold may rise today after minutes from the US Federal Reserve’s latest meet signaled that policymakers are willing to keep interest rates near zero for a longer period as risks such as a stronger dollar and the Greek crisis, overshadow a strong US labour market recovery.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,137 per 10 gram, down by 0.31 per cent after opening at Rs 26,244, against the previous closing price of Rs 26,219. It touched the intra-day low of Rs 26,070 till the closing.
19/02/2015 09:38
Gold futures closed lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the precious metal as fears that Greece may exit the euro eased, dimming the safe haven demand for the bullion.
Speculation is rife that Greece and its international creditors will soon reach a debt compromise to extend the country’s bailout accord, enabling Greece to avert a funding crunch and averting an exit from the monetary union.
Greece was set to submit a request for a six-month loan extension to the Euro area.
The biggest drop in US producer prices since November 2009 in January 2015 signaled weakening inflation in the world’s biggest economy, boosting the case for the US Federal Reserve to stay put on low interest rates for the time being, bolstering the appeal of the bullion as a store of value, trimming losses in the bullion.
US wholesale prices fell 0.8 per cent in January from the previous month when they declined 0.2 per cent.
Gold may rise today after minutes from the US Federal Reserve’s latest meet signaled that policymakers are willing to keep interest rates near zero for a longer period as risks such as a stronger dollar and the Greek crisis, overshadow a strong US labour market recovery.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,137 per 10 gram, down by 0.31 per cent after opening at Rs 26,244, against the previous closing price of Rs 26,219. It touched the intra-day low of Rs 26,070 till the closing.
