Stronger dollar bites Gold 24/08/2016 12:02

Stronger dollar bites Gold
24/08/2016 12:02

Gold futures fell during late morning trade in the domestic market on Wednesday as investors and speculators exited positions in the yellow metal tracking a bearish trend overseas as a stronger dollar curbed the lure for the bullion as an alternative asset.
Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Better-than-expected US housing data raised bets of a US interest rate hike this year, dampening the bullion’s appeal as a store of value. US new home sales rose 12.4 per cent to a 654,000 annualized pace in July, the highest level in nearly nine years.
At the MCX, Gold futures for October 2016 contract is trading at Rs 31,312, per 10 gram, down by 0.18 per cent after opening at Rs 31,290, against the previous closing price of Rs 31,370. It touched the intra-day low of Rs 31,265. (At 11:59 AM).