Stronger dollar weighs on Bullion
12/02/2015 09:16
Gold futures ended lower in the domestic market on Wednesday tracking a weak trend in the overseas market as a stronger dollar curbed the demand for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
A top US Federal Reserve official signaled that low global oil prices are a net positive for the US economy, shrugging off concerns over low inflation.
Last week’s sizzling jobs data has signaled the significant labour market recovery in the world’s biggest economy, raising bets of a mid-2015 interest rate hike, dimming the appeal of the bullion as a store of value.
Gold may rise today after European leaders failed to reach an agreement over Greece’s bailout program following talks in Brussels, boosting safe haven demand for the bullion.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,665 per 10 gram, down by 0.71 per cent after opening at Rs 26,874, against the previous closing price of Rs 26,856 It touched the intra-day low of Rs 26,621till the closing.
12/02/2015 09:16
Gold futures ended lower in the domestic market on Wednesday tracking a weak trend in the overseas market as a stronger dollar curbed the demand for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
A top US Federal Reserve official signaled that low global oil prices are a net positive for the US economy, shrugging off concerns over low inflation.
Last week’s sizzling jobs data has signaled the significant labour market recovery in the world’s biggest economy, raising bets of a mid-2015 interest rate hike, dimming the appeal of the bullion as a store of value.
Gold may rise today after European leaders failed to reach an agreement over Greece’s bailout program following talks in Brussels, boosting safe haven demand for the bullion.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,665 per 10 gram, down by 0.71 per cent after opening at Rs 26,874, against the previous closing price of Rs 26,856 It touched the intra-day low of Rs 26,621till the closing.
