Gold closes higher on strong global cues
16/02/2015 09:37
Gold futures ended higher in the domestic market on Friday as the recent disappointing U.S. economic reports continued to weigh on the dollar and as investors awaited more U.S. data due later in the day. A weaker dollar raised the demand for gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus increasing demand. Gold futures strengthened after the U.S. Commerce Department reported on Thursday that retail sales declined by 0.8 per cent last month, worse than expectations for a drop of 0.5 per cent. Retail sales fell by 0.9 per cent in December. Meanwhile, market participants continued to focus on developments in Greece after talks with European Union officials ended without an agreement, though both sides said there was still hope for a deal. Further talks are due to be held next Monday. Gold may decline today on speculation that the US Fed is moving closer to a rate hike. At the MCX, Gold futures for April 2015 contract closed at Rs 26,691 per 10 gram, up by 0.65 per cent after opening at Rs 26,606, against the previous closing price of Rs 26,519. It touched the intra-day high of Rs 26,787 till the closing.
16/02/2015 09:37
Gold futures ended higher in the domestic market on Friday as the recent disappointing U.S. economic reports continued to weigh on the dollar and as investors awaited more U.S. data due later in the day. A weaker dollar raised the demand for gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus increasing demand. Gold futures strengthened after the U.S. Commerce Department reported on Thursday that retail sales declined by 0.8 per cent last month, worse than expectations for a drop of 0.5 per cent. Retail sales fell by 0.9 per cent in December. Meanwhile, market participants continued to focus on developments in Greece after talks with European Union officials ended without an agreement, though both sides said there was still hope for a deal. Further talks are due to be held next Monday. Gold may decline today on speculation that the US Fed is moving closer to a rate hike. At the MCX, Gold futures for April 2015 contract closed at Rs 26,691 per 10 gram, up by 0.65 per cent after opening at Rs 26,606, against the previous closing price of Rs 26,519. It touched the intra-day high of Rs 26,787 till the closing.
