Bullion hit by Yellen comments
30/03/2015 09:48
Gold futures closed lower in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as easing geopolitical concerns regarding Yemen curbed the demand for the bullion as an alternative asset.
Fed Chair Janet Yellen said that she expects the FOMC to begin monetary tightening this year, with subsequent rate lift-offs to be gradual rather than following a predictable path, dimming the appeal of the bullion as a store of value.
However, a weaker dollar boosted the demand for gold as an alternative asset, supporting the yellow metal. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Gold may extend a decline today as caution persists ahead of US consumer spending data.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,569 per 10 gram, down by 0.87 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,387 till the closing.
30/03/2015 09:48
Gold futures closed lower in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as easing geopolitical concerns regarding Yemen curbed the demand for the bullion as an alternative asset.
Fed Chair Janet Yellen said that she expects the FOMC to begin monetary tightening this year, with subsequent rate lift-offs to be gradual rather than following a predictable path, dimming the appeal of the bullion as a store of value.
However, a weaker dollar boosted the demand for gold as an alternative asset, supporting the yellow metal. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Gold may extend a decline today as caution persists ahead of US consumer spending data.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,569 per 10 gram, down by 0.87 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,387 till the closing.
