Stronger dollar hits yellow metal
24/02/2015 09:28
Gold futures closed lower in the domestic market on Monday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger bullion makes gold more expensive for those holding other currencies, thus dimming demand. Further, plunging crude oil prices threatened to exert further downward pressure on global inflation, dimming the appeal of gold, a hedge against rising consumer prices. Gold also fell after Greece struck a provisional deal with Euro group finance ministers to receive a four-month extension on its bailout, curbing safe haven demand. Caution ahead of the testimony of Fed Chair Janet Yellen to a US Congressional Committee on Tuesday where she may offer cues over the Fed’s assessment of the world’s biggest economy and the timing of the maiden US interest rate hike since 2006 also weighed on sentiment. Gold may extend a decline today as investors cautiously await the Yellen speech to the Congress. At the MCX, Gold futures for April 2015 contract closed at Rs 26,153 per 10 gram, down by 0.47 per cent after opening at Rs 26,228, against the previous closing price of Rs 26,277. It touched the intra-day low of Rs 25,955 till the closing.
24/02/2015 09:28
Gold futures closed lower in the domestic market on Monday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger bullion makes gold more expensive for those holding other currencies, thus dimming demand. Further, plunging crude oil prices threatened to exert further downward pressure on global inflation, dimming the appeal of gold, a hedge against rising consumer prices. Gold also fell after Greece struck a provisional deal with Euro group finance ministers to receive a four-month extension on its bailout, curbing safe haven demand. Caution ahead of the testimony of Fed Chair Janet Yellen to a US Congressional Committee on Tuesday where she may offer cues over the Fed’s assessment of the world’s biggest economy and the timing of the maiden US interest rate hike since 2006 also weighed on sentiment. Gold may extend a decline today as investors cautiously await the Yellen speech to the Congress. At the MCX, Gold futures for April 2015 contract closed at Rs 26,153 per 10 gram, down by 0.47 per cent after opening at Rs 26,228, against the previous closing price of Rs 26,277. It touched the intra-day low of Rs 25,955 till the closing.
