Gold flat on US rate hike uncertainty 07/09/2016

Gold flat on US rate hike uncertainty
07/09/2016 13:44

Gold futures were trading flat, with a negative bias on Wednesday during noon trade in the domestic market as investors shied away from booking fresh positions in the yellow metal amid uncertainty surrounding the timing of the next US Federal Reserve interest rate hike.
San Francisco Fed President John Williams said that the US economy was in good shape despite the recent disappointing data as he backed the case for a rate hike sooner rather than later, curbing the lure for the bullion as a store of value.
While US payrolls data underwhelmed in August, services growth plunged to a six-year low.
Gold, a non-interest bearing asset, tends to lose sheen in a rising interest rate scenario.
At the MCX, gold futures for October 2016 contract is trading at Rs 31,360 per 10 grams, down by 0.06 per cent, after opening at Rs 31,440, against a previous close of Rs 31,378. It touched the intra-day low of Rs 31,351 (at 13:38 PM).