Fed hopes lift Bullion
06/02/2015 09:32
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after a weaker dollar boosted the demand for the bullion as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
A top US Federal Reserve official urged policymakers to remain patient over rate tightening amid very low inflation while an uptick in jobless claims last week and a widening trade gap also boosted the case for pushing back the timeline to raise borrowing costs in the world’s biggest economy for the first time since 2006, lifting the demand for the bullion as a store of value. Boston Federal Reserve President Eric Rosengren stressed that the Fed should not be in a hurry to raise interest rates amid weak inflation.
Gold may trade on a subdued note today amid caution ahead of the key US January non-farm payrolls data to be unveiled today which may show that the world’s biggest economy added more than 200K jobs for a twelfth month on the trot.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,757 per 10 gram, up by 0.10 per cent after opening at Rs 27,875, against the previous closing price of Rs 27,729. It touched the intra-day high of Rs 28,500 till the closing.
06/02/2015 09:32
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after a weaker dollar boosted the demand for the bullion as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
A top US Federal Reserve official urged policymakers to remain patient over rate tightening amid very low inflation while an uptick in jobless claims last week and a widening trade gap also boosted the case for pushing back the timeline to raise borrowing costs in the world’s biggest economy for the first time since 2006, lifting the demand for the bullion as a store of value. Boston Federal Reserve President Eric Rosengren stressed that the Fed should not be in a hurry to raise interest rates amid weak inflation.
Gold may trade on a subdued note today amid caution ahead of the key US January non-farm payrolls data to be unveiled today which may show that the world’s biggest economy added more than 200K jobs for a twelfth month on the trot.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,757 per 10 gram, up by 0.10 per cent after opening at Rs 27,875, against the previous closing price of Rs 27,729. It touched the intra-day high of Rs 28,500 till the closing.
