Yellow metal loses sheen on dollar strengthening
29/08/2016 12:04
Gold futures were trading lower during the noon trade in the domestic market on Monday as investors and speculators cut down their bets in the precious metal on US dollar strengthening after hawkish comments from US Fed Chair Janet Yellen who left the door open to an interest rate hike this year in the world’s biggest economy. US Federal Reserve Chair Janet Yellen said on Friday that the case for raising US interest rates has strengthened in recent months due to improvements in the labour market and expectations for moderate economic growth. Stronger greenback makes the yellow metal costlier for those holding other currencies, thus dimnishing demand. At the MCX, gold futures for October 2016 contract is trading at Rs 30,949 per 10 grams, down by 0.13 per cent, after opening at Rs 30,940, against a previous close of Rs 30,990. It touched the intra-day low of Rs 30,879 (at 11:53 hours).
