Renewed Fed rate hike bets hit Gold
08/08/2016 16:04
Gold futures fell during evening trade in the domestic market on Monday as investors and speculators exited positions in the precious metal as better-than-expected US jobs data for July signaled a strengthening labour market recovery which bolstered the case for an interest rate hike by the Federal Reserve before the end of 2016, dimming the lure for the bullion as a store of value.
Non-farm payrolls in the US climbed 255,000 in July, following a revised 292,000 gain in June, against an estimated 180,000 addition.
Further, a stronger dollar curbed the lure for gold as a store of value. Stronger greenback makes the yellow metal more expensive for those holding other currencies.
At the MCX, gold futures for October 2016 contract is trading at Rs 31,064 per 10 grams, down by 0.53 per cent, after opening at Rs 31,202, against a previous close of Rs 31,228. It touched the intra-day low of Rs 31,020. (At 16:02 PM).
