Bullion rallies as Fed begins meet
29/04/2015 09:39
Gold futures ended higher in the domestic market on Tuesday 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, all eyes were on the US Federal Reserve which on Tuesday began a two-day policy meet where it may offer fresh cues over when it plans to undertake a maiden interest rate hike since 2006.
Amidst the backdrop of a worsening US slowdown and below-target inflation, bets of a mid-year rate hike have been pared with the Fed tipped to stick to its zero interest rate policy stance in the coming months, bolstering the appeal of the bullion as a store of value.
Gold may trade on a cautious note today ahead of the FOMC meet outcome.
At the MCX, Gold futures for June 2015 contract closed at Rs 27,190 per 10 gram, up by 0.40 per cent after opening at Rs 27,070, against the previous closing price of Rs 27,083. It touched the intra-day high of Rs 27,212 till the closing
29/04/2015 09:39
Gold futures ended higher in the domestic market on Tuesday 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, all eyes were on the US Federal Reserve which on Tuesday began a two-day policy meet where it may offer fresh cues over when it plans to undertake a maiden interest rate hike since 2006.
Amidst the backdrop of a worsening US slowdown and below-target inflation, bets of a mid-year rate hike have been pared with the Fed tipped to stick to its zero interest rate policy stance in the coming months, bolstering the appeal of the bullion as a store of value.
Gold may trade on a cautious note today ahead of the FOMC meet outcome.
At the MCX, Gold futures for June 2015 contract closed at Rs 27,190 per 10 gram, up by 0.40 per cent after opening at Rs 27,070, against the previous closing price of Rs 27,083. It touched the intra-day high of Rs 27,212 till the closing
