Gold remains lower after FOMC minutes
09/04/2015 09:44
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as minutes from the US Federal Reserve’s March policy meet signaled a split among FOMC officials over the prospect of an initial interest rate lift-off in June.
The minutes signaled that many policymakers were quite willing to hike short-term borrowing costs as early as June, dimming the appeal of gold as a store of value. “Several participants judged that the economic data and outlook were likely to warrant beginning normalization at the June meeting,” the minutes showed.
In March, the Fed had dropped its pledge of being “patient” over monetary tightening, paving the way for a maiden rate lift-off since 2006.
However, recent economic data which included the weakest payrolls gains since December 2013 in March 2015 has reduced bets of tightening in June.
Gold may extend losses today amid uncertainty over the timing of US monetary tightening.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,670 per 10 gram, down by 0.43 per cent after opening at Rs 26,880, against the previous closing price of Rs 26,875. It touched the intra-day low of Rs 26,671 till the closing.
09/04/2015 09:44
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as minutes from the US Federal Reserve’s March policy meet signaled a split among FOMC officials over the prospect of an initial interest rate lift-off in June.
The minutes signaled that many policymakers were quite willing to hike short-term borrowing costs as early as June, dimming the appeal of gold as a store of value. “Several participants judged that the economic data and outlook were likely to warrant beginning normalization at the June meeting,” the minutes showed.
In March, the Fed had dropped its pledge of being “patient” over monetary tightening, paving the way for a maiden rate lift-off since 2006.
However, recent economic data which included the weakest payrolls gains since December 2013 in March 2015 has reduced bets of tightening in June.
Gold may extend losses today amid uncertainty over the timing of US monetary tightening.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,670 per 10 gram, down by 0.43 per cent after opening at Rs 26,880, against the previous closing price of Rs 26,875. It touched the intra-day low of Rs 26,671 till the closing.
