Fed tightening jitters, stronger dollar weigh on Gold
01/04/2015 09:30
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal after a top US Federal Reserve official signaled a probability of an interest rate hike in the Fed’s June meeting, dimming the appeal of the bullion as a store of value.
Federal Reserve Bank of Richmond President Jeffery Lacker, a policy hawk, stressed that there remains a strong case for the FOMC to begin rate tightening from June.
A stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may extend losses today as a signs of an Iran nuclear deal eases geopolitical tensions, curbing safe haven demand for the yellow metal.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,204 per 10 gram, down by 0.25 per cent after opening at Rs 26,208, against the previous closing price of Rs 26,270. It touched the intra-day low of Rs 26,156 till the closing.
01/04/2015 09:30
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal after a top US Federal Reserve official signaled a probability of an interest rate hike in the Fed’s June meeting, dimming the appeal of the bullion as a store of value.
Federal Reserve Bank of Richmond President Jeffery Lacker, a policy hawk, stressed that there remains a strong case for the FOMC to begin rate tightening from June.
A stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may extend losses today as a signs of an Iran nuclear deal eases geopolitical tensions, curbing safe haven demand for the yellow metal.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,204 per 10 gram, down by 0.25 per cent after opening at Rs 26,208, against the previous closing price of Rs 26,270. It touched the intra-day low of Rs 26,156 till the closing.
