Fed’s Evans’ comments lift Bullion
05/05/2015 09:37
Gold futures ended higher in the domestic and overseas market on Monday as investors and speculators booked fresh positions in the precious metal as a top US Federal Reserve official squashed speculation of a near-term interest rate hike, bolstering the appeal of the bullion as a store of value.
Federal Reserve Bank of Chicago President Charles Evans on Monday stressed that it wasn’t appropriate to initiate a rate lift-off until early next year amidst dismal first quarter US economic data.
The world’s biggest economy grew at a minuscule 0.2 per cent annualized pace in the January-March 2015 period.
The gains in the bullion came amidst a stronger dollar which tends to curb demand for gold as an alternative asset. Stronger dollar makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may fall today as investors stay cautious ahead of key US data this week including April payroll numbers.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,868 per 10 gram, up by 0.87 per cent after opening at Rs 26,697, against the previous closing price of Rs 26,636. It touched the intra-day high of Rs 26,959 till the closing.
05/05/2015 09:37
Gold futures ended higher in the domestic and overseas market on Monday as investors and speculators booked fresh positions in the precious metal as a top US Federal Reserve official squashed speculation of a near-term interest rate hike, bolstering the appeal of the bullion as a store of value.
Federal Reserve Bank of Chicago President Charles Evans on Monday stressed that it wasn’t appropriate to initiate a rate lift-off until early next year amidst dismal first quarter US economic data.
The world’s biggest economy grew at a minuscule 0.2 per cent annualized pace in the January-March 2015 period.
The gains in the bullion came amidst a stronger dollar which tends to curb demand for gold as an alternative asset. Stronger dollar makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may fall today as investors stay cautious ahead of key US data this week including April payroll numbers.
At the MCX, Gold futures for June 2015 contract closed at Rs 26,868 per 10 gram, up by 0.87 per cent after opening at Rs 26,697, against the previous closing price of Rs 26,636. It touched the intra-day high of Rs 26,959 till the closing.
