Bullion extends gains on rate outlook, safe haven demand
26/03/2015 09:44
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the appeal of the bullion as an alternative asset. Stronger greenback makes gold cheaper for those holding other currencies, thus dimming demand. A surprise drop in US durable goods orders last month signaled a slowdown in the world’s biggest economy, raising bets that the US Federal Reserve may hold off monetary tightening in the near-term, bolstering the appeal of gold as a store of value. Meanwhile, Saudi Arabia and its allies began bombing targets in Yemen, boosting safe haven demand for gold. Saudi Arabia’s bombing of Shiite rebels in Yemen fueled fresh fears of unrest in the Middle East, raising concerns over disruptions in oil shipments from the oil-rich region. Gold may extend gains today amid renewed safe haven appeal and speculation of lower US interest rates for longer. At the MCX, Gold futures for April 2015 contract closed at Rs 26,483 per 10 gram, up by 0.50 per cent after opening at Rs 26,280, against the previous closing price of Rs 26,351. It touched the intra-day high of Rs 26,498 till the closing.
26/03/2015 09:44
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the appeal of the bullion as an alternative asset. Stronger greenback makes gold cheaper for those holding other currencies, thus dimming demand. A surprise drop in US durable goods orders last month signaled a slowdown in the world’s biggest economy, raising bets that the US Federal Reserve may hold off monetary tightening in the near-term, bolstering the appeal of gold as a store of value. Meanwhile, Saudi Arabia and its allies began bombing targets in Yemen, boosting safe haven demand for gold. Saudi Arabia’s bombing of Shiite rebels in Yemen fueled fresh fears of unrest in the Middle East, raising concerns over disruptions in oil shipments from the oil-rich region. Gold may extend gains today amid renewed safe haven appeal and speculation of lower US interest rates for longer. At the MCX, Gold futures for April 2015 contract closed at Rs 26,483 per 10 gram, up by 0.50 per cent after opening at Rs 26,280, against the previous closing price of Rs 26,351. It touched the intra-day high of Rs 26,498 till the closing.
