Gold dips on Fed rate hike possibility
23/08/2016 08:43
Gold futures closed lower in the domestic market on Monday pressured by expectations that a speech from U.S. Federal Reserve Chairwoman Janet Yellen later this week will support an interest-rate hike as soon as September, fueling a rise in the dollar. Fed members are set to converge on Jackson Hole near the end of the week for an annual policy retreat. Investors will parse Yellen's speech Friday for clues on the near-term fate of interest rates. The debate over the odds, however slim, for a typically gold-negative rate hike yet this year continues to intensify in the lead-up to the market-sensitive event. At the MCX, Gold futures for October 2016 contract closed at Rs 31,370, per 10 gram, down by 0.11 per cent after opening at Rs 31,325, against the previous closing price of Rs 31,404. It touched the intra-day low of Rs 31,204.
