Gold up as Fed rate hike fears ebb
03/08/2016 14:35
Gold futures were trading higher during noon trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal amid expectation that the US Federal Reserve may hold off tightening interest rates in the near-term as soft data suggested a tame recovery in the world’s biggest economy, bolstering the lure for the bullion as a store of value.
The US economy grew at a less than expected 1.2 per cent annualized rate in Q2 while data on Tuesday showed that inflation remains muted with the core US personal consumption expenditures (PCE) index, the Fed’s preferred gauge of inflation rising 1.6 per cent in June 2016, year-on-year, compared to the targeted 2 per cent.
However, losses in the international market as a stronger dollar curbed the lure for gold as an alternative asset, restricted gains in domestic bullion prices.
At the MCX, gold futures for August 2016 contract is trading at Rs 31,877 per 10 grams, up by 0.32 per cent, after opening at Rs 31,809, against a previous close of Rs 31,775. It touched the intra-day high of Rs 31,939 (at 14:34 PM).
03/08/2016 14:35
The US economy grew at a less than expected 1.2 per cent annualized rate in Q2 while data on Tuesday showed that inflation remains muted with the core US personal consumption expenditures (PCE) index, the Fed’s preferred gauge of inflation rising 1.6 per cent in June 2016, year-on-year, compared to the targeted 2 per cent.
However, losses in the international market as a stronger dollar curbed the lure for gold as an alternative asset, restricted gains in domestic bullion prices.
At the MCX, gold futures for August 2016 contract is trading at Rs 31,877 per 10 grams, up by 0.32 per cent, after opening at Rs 31,809, against a previous close of Rs 31,775. It touched the intra-day high of Rs 31,939 (at 14:34 PM).
