Gold slips amid caution ahead of Fed meet
18/03/2015 09:49
Gold futures fell in the domestic and overseas market on Tuesday as investors and speculators exited positions in the precious metal amid caution ahead of the outcome of the US Federal Reserve’s two-day policy meet on Wednesday in which the world’s top central bank is expected to offer some cues over when it plans to start hiking short-term borrowing costs for the first time since 2006. Investors are fretting that the FOMC may drop the word “patient” from its statement, which would signal a clear readiness to raise interest rates in the near-future, and that may adversely impact the bullion’s demand as a store of value. However, a weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the bullion. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may trade on a subdued note today as investors await the Fed policy decision. At the MCX, Gold futures for April 2015 contract closed at Rs 25,617 per 10 gram, down by 0.64 per cent after opening at Rs 25,721, against the previous closing price of Rs 25,783. It touched the intra-day low of Rs 25,521 till the closing.
18/03/2015 09:49
Gold futures fell in the domestic and overseas market on Tuesday as investors and speculators exited positions in the precious metal amid caution ahead of the outcome of the US Federal Reserve’s two-day policy meet on Wednesday in which the world’s top central bank is expected to offer some cues over when it plans to start hiking short-term borrowing costs for the first time since 2006. Investors are fretting that the FOMC may drop the word “patient” from its statement, which would signal a clear readiness to raise interest rates in the near-future, and that may adversely impact the bullion’s demand as a store of value. However, a weaker dollar boosted the demand for gold as an alternative asset, trimming losses in the bullion. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand. Gold may trade on a subdued note today as investors await the Fed policy decision. At the MCX, Gold futures for April 2015 contract closed at Rs 25,617 per 10 gram, down by 0.64 per cent after opening at Rs 25,721, against the previous closing price of Rs 25,783. It touched the intra-day low of Rs 25,521 till the closing.
