Weaker greenback lifts Gold
16/04/2015 09:46
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the demand for the precious metal as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Fears over a potential Greek default also boosted the safe haven demand for gold with the country’s officials facing a Monday deadline to lay down a revised reform list to the Euro area working group as the Mediterranean nation bids to unlock a fresh stimulus package.
Meanwhile, the European Central Bank left its key interest rates at record lows while committing to firmly continue its aggressive bond buying program at full capacity, bolstering the appeal of the bullion as a hedge against the inflationary risk of monetary stimulus.
However, gains in the bullion were stemmed by comments from St. Louis Fed President James Bullard who called for a near-term interest rate hike, curbing the lure for the bullion as a store of value.
Gold futures may trade cautiously today as investors eye key US data including jobless claims, housing starts and Fed member speeches.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,737 per 10 gram, up by 0.73 per cent after opening at Rs 26,532, against the previous closing price of Rs 26,544. It touched the intra-day high of Rs 26,765 till the closing.
16/04/2015 09:46
Gold futures ended higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as a weaker dollar boosted the demand for the precious metal as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Fears over a potential Greek default also boosted the safe haven demand for gold with the country’s officials facing a Monday deadline to lay down a revised reform list to the Euro area working group as the Mediterranean nation bids to unlock a fresh stimulus package.
Meanwhile, the European Central Bank left its key interest rates at record lows while committing to firmly continue its aggressive bond buying program at full capacity, bolstering the appeal of the bullion as a hedge against the inflationary risk of monetary stimulus.
However, gains in the bullion were stemmed by comments from St. Louis Fed President James Bullard who called for a near-term interest rate hike, curbing the lure for the bullion as a store of value.
Gold futures may trade cautiously today as investors eye key US data including jobless claims, housing starts and Fed member speeches.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,737 per 10 gram, up by 0.73 per cent after opening at Rs 26,532, against the previous closing price of Rs 26,544. It touched the intra-day high of Rs 26,765 till the closing.
