Bullion posts modest gains amid tepid US data
07/05/2015 09:42
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the bullion as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus lifting demand.
Investors weighed weaker than expected American private sector jobs data which signaled a cooling recovery in the labour market of the world’s biggest economy, bolstering the safe haven demand for the yellow metal.
The American private sector added 169,000 workers in May, compared to a downwardly revised 175,000 increase in March.
However, the gains in gold were curbed by comments from Federal Reserve Bank of Atlanta President Dennis Lockhart who predicted a hike in US interest rates at some point in the coming months as the world’s top central bank gauges the health of the economy with softness at the start of the year, likely to be temporary, dimming the appeal of the bullion as a store of value.
Gold may trade on a subdued note today as focus shifts to Friday’s key US non-farm payrolls data.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,911 per 10 gram, up by 0.12 per cent after opening at Rs 26,950, against the previous closing price of Rs 26,880. It touched the intra-day high of Rs 27,054 till the closing.
07/05/2015 09:42
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the bullion as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus lifting demand.
Investors weighed weaker than expected American private sector jobs data which signaled a cooling recovery in the labour market of the world’s biggest economy, bolstering the safe haven demand for the yellow metal.
The American private sector added 169,000 workers in May, compared to a downwardly revised 175,000 increase in March.
However, the gains in gold were curbed by comments from Federal Reserve Bank of Atlanta President Dennis Lockhart who predicted a hike in US interest rates at some point in the coming months as the world’s top central bank gauges the health of the economy with softness at the start of the year, likely to be temporary, dimming the appeal of the bullion as a store of value.
Gold may trade on a subdued note today as focus shifts to Friday’s key US non-farm payrolls data.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,911 per 10 gram, up by 0.12 per cent after opening at Rs 26,950, against the previous closing price of Rs 26,880. It touched the intra-day high of Rs 27,054 till the closing.
