Bullion regains sheen as Fed tightening bets pushed back
07/04/2015 09:39
Gold futures closed lower in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal after tepid US jobs data signaled a cooling labour market recovery in the world’s biggest economy, raising bets that the US Federal Reserve may delay planned monetary tightening, bolstering the appeal of the bullion as a store of value.
American employers added only 126,000 workers in March, the smallest hiring gain since December 2013, and trailing analysts’ estimates for an employment addition of 245,000. Last month’s hiring gain followed a revised 264,000 addition in February and compared to an average rise of 269,000 over the prior 12 months, data from the US Labour Department showed on Friday.
With the US economy showing signs of losing steam, Federal Reserve New York President William Dudley urged the Fed to go easy on interest rate hikes, reinforcing bets that the world’s top central bank may stick to its easy money policy stance at least until September.
Gold may fall today as a stronger dollar curbs the demand for the precious metal as an alternative asset.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,997 per 10 gram, up by 1.5 per cent after opening at Rs 26,645, against the previous closing price of Rs 26,597. It touched the intra-day high of Rs 27,095 till the closing.
07/04/2015 09:39
Gold futures closed lower in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal after tepid US jobs data signaled a cooling labour market recovery in the world’s biggest economy, raising bets that the US Federal Reserve may delay planned monetary tightening, bolstering the appeal of the bullion as a store of value.
American employers added only 126,000 workers in March, the smallest hiring gain since December 2013, and trailing analysts’ estimates for an employment addition of 245,000. Last month’s hiring gain followed a revised 264,000 addition in February and compared to an average rise of 269,000 over the prior 12 months, data from the US Labour Department showed on Friday.
With the US economy showing signs of losing steam, Federal Reserve New York President William Dudley urged the Fed to go easy on interest rate hikes, reinforcing bets that the world’s top central bank may stick to its easy money policy stance at least until September.
Gold may fall today as a stronger dollar curbs the demand for the precious metal as an alternative asset.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,997 per 10 gram, up by 1.5 per cent after opening at Rs 26,645, against the previous closing price of Rs 26,597. It touched the intra-day high of Rs 27,095 till the closing.
