Stronger greenback hits yellow metal
08/04/2015 09:31
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. However, gold remained supported by speculation of a delayed rate hike by the US Federal Reserve, bolstering the appeal of the bullion as a store of value. Federal Reserve Bank of Minneapolis president Narayana Kocherlakota urged the Fed not to raise interest rates until the second half of next year amidst below target inflation; and a cooling labour market recovery. Gold may trade on a cautious note today ahead of the release of the FOMC minutes which may offer cues over a maiden US rate lift-off since 2006. At the MCX, Gold futures for June 2015 contract closed at Rs 26,875 per 10 gram, down by 0.45 per cent after opening at Rs 26,980, against the previous closing price of Rs 26,997. It touched the intra-day low of Rs 26,852 till the closing.
08/04/2015 09:31
Gold futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. However, gold remained supported by speculation of a delayed rate hike by the US Federal Reserve, bolstering the appeal of the bullion as a store of value. Federal Reserve Bank of Minneapolis president Narayana Kocherlakota urged the Fed not to raise interest rates until the second half of next year amidst below target inflation; and a cooling labour market recovery. Gold may trade on a cautious note today ahead of the release of the FOMC minutes which may offer cues over a maiden US rate lift-off since 2006. At the MCX, Gold futures for June 2015 contract closed at Rs 26,875 per 10 gram, down by 0.45 per cent after opening at Rs 26,980, against the previous closing price of Rs 26,997. It touched the intra-day low of Rs 26,852 till the closing.
