Gold dips as India announces rate cut
05/03/2015 12:08
Gold prices fell by 0.09 per cent on Thursday at the domestic markets after India unexpectedly cut its benchmark interest rate. India's central bank lowered its interest rate 0.25 per cent to 7.5 per cent, marking its second rate cut in months. A lower interest-rate is often regarded as a positive sign for gold, as it decreases the price of holding onto the precious metal. Further, a strong dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. Gold futures for April 2015 contract, at MCX, were trading at Rs. 26,522 per 10 grams, down by 0.09 per cent after opening at Rs. 26,565 against the previous closing price of Rs. 26,547. It touched the intra-low high of Rs. 26,516 till the trading. (At 11.50 AM today).
05/03/2015 12:08
Gold prices fell by 0.09 per cent on Thursday at the domestic markets after India unexpectedly cut its benchmark interest rate. India's central bank lowered its interest rate 0.25 per cent to 7.5 per cent, marking its second rate cut in months. A lower interest-rate is often regarded as a positive sign for gold, as it decreases the price of holding onto the precious metal. Further, a strong dollar reduced the appeal of the bullion as an alternative asset. Stronger dollar makes the precious metal expensive for those holding other currencies, thus reducing demand. Gold futures for April 2015 contract, at MCX, were trading at Rs. 26,522 per 10 grams, down by 0.09 per cent after opening at Rs. 26,565 against the previous closing price of Rs. 26,547. It touched the intra-low high of Rs. 26,516 till the trading. (At 11.50 AM today).
