Bullion retreats amid record stock rally
27/04/2015 09:13
Gold futures closed lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a record rally in US stocks dampened the demand for the yellow metal as an alternative asset.
Meanwhile, caution ahead of the US Federal Reserve’s two-day meet beginning this Tuesday which may offer fresh cues over the timing of a maiden US interest rate hike since 2006 also weighed on sentiment. Gold tends to benefit from ultra loose monetary policies by global central banks.
Investors weighed a mixed US factory report which showed a rebound in durable goods orders in March but softness in capital spending.
However, a weaker dollar boosted the demand for the bullion as an alternative asset, trimming losses in gold futures. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
Gold may remain lower today amid caution ahead of FOMC meet this week.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,701 per 10 gram, down by 0.74 per cent after opening at Rs 26,867, against the previous closing price of Rs 26,900. It touched the intra-day low of Rs 26,630 till the closing.
27/04/2015 09:13
Gold futures closed lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a record rally in US stocks dampened the demand for the yellow metal as an alternative asset.
Meanwhile, caution ahead of the US Federal Reserve’s two-day meet beginning this Tuesday which may offer fresh cues over the timing of a maiden US interest rate hike since 2006 also weighed on sentiment. Gold tends to benefit from ultra loose monetary policies by global central banks.
Investors weighed a mixed US factory report which showed a rebound in durable goods orders in March but softness in capital spending.
However, a weaker dollar boosted the demand for the bullion as an alternative asset, trimming losses in gold futures. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
Gold may remain lower today amid caution ahead of FOMC meet this week.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,701 per 10 gram, down by 0.74 per cent after opening at Rs 26,867, against the previous closing price of Rs 26,900. It touched the intra-day low of Rs 26,630 till the closing.
