Bullion logs slim gains on dollar weakness
06/05/2015 09:41
Gold futures ended tad higher in the domestic market on Tuesday as a stronger dollar supported the demand for the bullion as an alternative asset.
Stronger greenback makes gold cheaper for those holding other currencies, thus lifting demand.
Investors weighed mixed US data which showed that services growth accelerated in April but trade deficit widened to the highest level in more than six years in March, raising uncertainty over the timing of a maiden US interest rate hike by the US Federal Reserve since 2006. Gold tends to receive support from easy money policies by global central banks.
Caution ahead of the non-farm payrolls data to be released on Friday which may show that the world’s biggest economy added 230,000 jobs in April following 126,000 in March kept investors on the edge.
Gold futures may trade on a subdued note today as investors’ eye key US data this week.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,880 per 10 gram, up by 0.04 per cent after opening at Rs 26,836, against the previous closing price of Rs 26,868. It touched the intra-day high of Rs 27,020 till the closing.
06/05/2015 09:41
Gold futures ended tad higher in the domestic market on Tuesday as a stronger dollar supported the demand for the bullion as an alternative asset.
Stronger greenback makes gold cheaper for those holding other currencies, thus lifting demand.
Investors weighed mixed US data which showed that services growth accelerated in April but trade deficit widened to the highest level in more than six years in March, raising uncertainty over the timing of a maiden US interest rate hike by the US Federal Reserve since 2006. Gold tends to receive support from easy money policies by global central banks.
Caution ahead of the non-farm payrolls data to be released on Friday which may show that the world’s biggest economy added 230,000 jobs in April following 126,000 in March kept investors on the edge.
Gold futures may trade on a subdued note today as investors’ eye key US data this week.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,880 per 10 gram, up by 0.04 per cent after opening at Rs 26,836, against the previous closing price of Rs 26,868. It touched the intra-day high of Rs 27,020 till the closing.
