Bullion posts modest gains after Fed meet
30/04/2015 09:42
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Further, the US Federal Reserve stuck to its record low interest rate policy stance amid slowing growth in the world’s biggest economy, bolstering the appeal of the bullion as a store of value. The Fed re-iterated that it will undertake a maiden US interest rate lift-off since 2006, only when it sees improvement in the labour market while it saw inflation moving back to the 2 per cent goal gradually. With the economy barely growing in Q1 and consumer spending & job gains slowing, analysts have pared back expectations of an initial rate rise to September from June earlier. Gold may extend gains today amid dimming expectations of a near-term US rate hike. At the MCX, Gold futures for June 2015 contract closed at Rs 27,238 per 10 gram, up by 0.18 per cent after opening at Rs 27,123, against the previous closing price of Rs 27,190. It touched the intra-day high of Rs 27,274 till the closing.
30/04/2015 09:42
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the precious metal as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Further, the US Federal Reserve stuck to its record low interest rate policy stance amid slowing growth in the world’s biggest economy, bolstering the appeal of the bullion as a store of value. The Fed re-iterated that it will undertake a maiden US interest rate lift-off since 2006, only when it sees improvement in the labour market while it saw inflation moving back to the 2 per cent goal gradually. With the economy barely growing in Q1 and consumer spending & job gains slowing, analysts have pared back expectations of an initial rate rise to September from June earlier. Gold may extend gains today amid dimming expectations of a near-term US rate hike. At the MCX, Gold futures for June 2015 contract closed at Rs 27,238 per 10 gram, up by 0.18 per cent after opening at Rs 27,123, against the previous closing price of Rs 27,190. It touched the intra-day high of Rs 27,274 till the closing.
