Bullion retreats but dollar weakness curbs losses
17/04/2015 09:41
Gold futures ended lower in the domestic market on Thursday but worries over a Greek debt default and a plunging US dollar trimmed losses in the precious metal.
Standard & Poor’s cut ratings on Greek debt, causing a spike in the country’s bond yields, exacerbating the risk of a catastrophic default for the Mediterranean nation which is facing a race against time to negotiate a debt deal with its creditors, supporting the demand for gold as a safe haven asset.
A weaker dollar boosted the demand for gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Speculation that the US Federal Reserve may delay a maiden interest rate lift-off since 2006 continues to boost gold’s appeal as a store of value. Federal Reserve Bank of Atlanta President Dennis Lockhart urged the world’s top central bank to wait longer before deciding to raise interest rates.
Gold futures may rebound today amid expectations of continued US easy money policy and Greek uncertainty.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,645 per 10 gram, down by 0.34 per cent after opening at Rs 26,710, against the previous closing price of Rs 26,737. It touched the intra-day low of Rs 26,568 till the closing.
17/04/2015 09:41
Gold futures ended lower in the domestic market on Thursday but worries over a Greek debt default and a plunging US dollar trimmed losses in the precious metal.
Standard & Poor’s cut ratings on Greek debt, causing a spike in the country’s bond yields, exacerbating the risk of a catastrophic default for the Mediterranean nation which is facing a race against time to negotiate a debt deal with its creditors, supporting the demand for gold as a safe haven asset.
A weaker dollar boosted the demand for gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Speculation that the US Federal Reserve may delay a maiden interest rate lift-off since 2006 continues to boost gold’s appeal as a store of value. Federal Reserve Bank of Atlanta President Dennis Lockhart urged the world’s top central bank to wait longer before deciding to raise interest rates.
Gold futures may rebound today amid expectations of continued US easy money policy and Greek uncertainty.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,645 per 10 gram, down by 0.34 per cent after opening at Rs 26,710, against the previous closing price of Rs 26,737. It touched the intra-day low of Rs 26,568 till the closing.
