Dollar strength weighs on Gold
21/04/2015 09:30
Gold futures closed on a flat note, with a positive bias in the domestic market on Monday tracking a subdued trend in the overseas market as a stronger dollar curbed the lure for the precious metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
However, the bullion received support from the ongoing impasse between Greece and its Euro group creditors with the country running out of time to strike a debt deal and receive the next disbursement of aid to stay solvent, even as ECB President Mario Draghi assured that Greece would not be kicked out of the Euro area.
Meanwhile, fresh monetary easing in China which cut the reserve requirement ratio for lenders to beef up growth bolstered the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
Gold may trade higher today amid uncertainty over Greece and fresh China stimulus move.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,837 per 10 gram, up by 0.09 per cent after opening at Rs 26,845, against the previous closing price of Rs 26,812. It touched the intra-day high of Rs 26,967 till the closing.
21/04/2015 09:30
Gold futures closed on a flat note, with a positive bias in the domestic market on Monday tracking a subdued trend in the overseas market as a stronger dollar curbed the lure for the precious metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
However, the bullion received support from the ongoing impasse between Greece and its Euro group creditors with the country running out of time to strike a debt deal and receive the next disbursement of aid to stay solvent, even as ECB President Mario Draghi assured that Greece would not be kicked out of the Euro area.
Meanwhile, fresh monetary easing in China which cut the reserve requirement ratio for lenders to beef up growth bolstered the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
Gold may trade higher today amid uncertainty over Greece and fresh China stimulus move.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,837 per 10 gram, up by 0.09 per cent after opening at Rs 26,845, against the previous closing price of Rs 26,812. It touched the intra-day high of Rs 26,967 till the closing.
