Bullion boosted by Fed official’s comments
13/04/2015 09:38
Gold futures ended higher in the domestic and overseas market on Friday as investors and speculators booked fresh positions in the precious metal on expectations that the US Federal Reserve may delay undertaking a maiden interest rate lift-off since 2006 amid a slowdown in the world’s biggest economy, bolstering the appeal for the bullion as a store of value.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota reiterated calls for not raising rates this year and instead urging the world’s top central bank to push back its timeline for an initial rate lift-off to the second half of 2016.
A stronger dollar curbed the appeal of Gold as an alternative asset, trimming gains in Gold futures. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may trade on a cautious note today as investors eye key US data this week including industrial production and consumer inflation that may have a bearing on the Fed’s timeline for rate hikes.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,781 per 10 gram, up by 0.98 per cent after opening at Rs 26,577, against the previous closing price of Rs 26,521. It touched the intra-day high of Rs 26,840 till the closing.
13/04/2015 09:38
Gold futures ended higher in the domestic and overseas market on Friday as investors and speculators booked fresh positions in the precious metal on expectations that the US Federal Reserve may delay undertaking a maiden interest rate lift-off since 2006 amid a slowdown in the world’s biggest economy, bolstering the appeal for the bullion as a store of value.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota reiterated calls for not raising rates this year and instead urging the world’s top central bank to push back its timeline for an initial rate lift-off to the second half of 2016.
A stronger dollar curbed the appeal of Gold as an alternative asset, trimming gains in Gold futures. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may trade on a cautious note today as investors eye key US data this week including industrial production and consumer inflation that may have a bearing on the Fed’s timeline for rate hikes.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,781 per 10 gram, up by 0.98 per cent after opening at Rs 26,577, against the previous closing price of Rs 26,521. It touched the intra-day high of Rs 26,840 till the closing.
