Stronger dollar bites yellow metal 08/05/2015

Stronger dollar bites yellow metal
08/05/2015 11:40
Gold futures fell in the domestic market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Further, caution ahead of the key US non-farm payrolls data to be unveiled later in the session and that may dictate the timing of a maiden Federal Reserve interest rate lift-off since 2006, weighed on the precious metal. At the MCX, Gold futures for June 2015 contract is trading at Rs 26,882 per 10 gram, down by 0.19 per cent after opening at Rs 26,912, against the previous closing price of Rs 26,934. It touched the intra-day low of Rs 26,855. (At 11:33 AM).

Bullion rallies as Fed begins meet 29/04/2015

Bullion rallies as Fed begins meet
29/04/2015 09:39
Gold futures ended higher in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal as a weaker dollar boosted the demand for the precious metal as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand.
Further, all eyes were on the US Federal Reserve which on Tuesday began a two-day policy meet where it may offer fresh cues over when it plans to undertake a maiden interest rate hike since 2006.
Amidst the backdrop of a worsening US slowdown and below-target inflation, bets of a mid-year rate hike have been pared with the Fed tipped to stick to its zero interest rate policy stance in the coming months, bolstering the appeal of the bullion as a store of value.
Gold may trade on a cautious note today ahead of the FOMC meet outcome.
At the MCX, Gold futures for June 2015 contract closed at Rs 27,190 per 10 gram, up by 0.40 per cent after opening at Rs 27,070, against the previous closing price of Rs 27,083. It touched the intra-day high of Rs 27,212 till the closing

Bear grips gold amid stronger dollar 27/03/2015

Bear grips gold amid stronger dollar
27/03/2015 12:25
Gold futures fell in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Investors were also cautious ahead of US Q4 GDP revised estimates which may have a bearing on when the US Fed will raise interest rates for the first time since 2006. However, fresh concerns over Middle East amid bombing in Yemen boosted gold’s safe haven appeal.
At the MCX, Gold futures for April 2015 contract is trading at Rs 26,729 per 10 gram, down by 0.27 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,657. (At 12:01 PM).

Fed hopes lift yellow metal 20/02/2015

Fed hopes lift yellow metal
20/02/2015 08:07
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after minutes from the US Federal Reserve’s latest meet signaled that policymakers are willing to keep interest rates near zero for a longer period as risks such as a stronger dollar and the Greek crisis, overshadow a strong US labour market recovery, bolstering the appeal of the bullion as a store of value.
Most policymakers “indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward” keeping rates near zero “for a longer time”, the minutes showed, as the Fed stuck to its pledge of being “patient” over hiking short-term borrowing costs.
Further, lingering impasse between Greece and its creditors over a debt compromise raised fears over a Greek default and an exit from the euro, boosting the safe haven demand for the bullion.
Reports emerged that Germany has rejected a proposed bailout extension request from Greece which is fast running out of cash. Greece on Tuesday had submitted a six-month loan extension but Germany said that the proposal was not a significant solution and didn’t meet the criteria proposed by the Euro group of finance ministers.
Gold may extend gains today after the Fed signaled that it may keep rates at lower levels for longer.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,266 per 10 gram, up by 0.49 per cent after opening at Rs 26,245, against the previous closing price of Rs 26,137. It touched the intra-day high of Rs 26,510 till the closing.

Bullion plunges on China demand fears 18/02/2015

Bullion plunges on China demand fears
18/02/2015 09:39
Gold futures closed on a bearish note in the domestic market on Tuesday as investors and speculators exited positions in the precious metal amid concerns over waning demand from China, the world’s second biggest gold buyer, during the Lunar New Year holiday. Markets in China will be shut for five sessions starting Wednesday. Record high US equities curbed the demand for Gold as an alternative asset. Philadelphia Federal Reserve President Charles Plosser urged the Fed to ignore the temporary drop in oil prices and low inflation, a sign that monetary tightening in the world’s biggest economy isn’t too far away, dimming the appeal of the bullion as a store of value. All eyes are on Greece with investors hoping for a possible last minute deal between the country’s new anti-austerity government and its international creditors to avoid a funding crunch and stay in the euro. Talks between Greek and Euro area finance officials stalled on Monday after an official from the country’s new anti- austerity government disapproved the Euro area’s proposed bailout extension conditions. Gold may continue the downward journey amid speculation of weak China demand. At the MCX, Gold futures for April 2015 contract closed at Rs 26,219 per 10 gram, down by 1.82 per cent after opening at Rs 26,650, against the previous closing price of Rs 26,704. It touched the intra-day low of Rs 26,182 till the closing.

Stronger dollar weighs on Bullion 12/02/2015

Stronger dollar weighs on Bullion
12/02/2015 09:16
Gold futures ended lower in the domestic market on Wednesday tracking a weak trend in the overseas market as a stronger dollar curbed the demand for gold as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
A top US Federal Reserve official signaled that low global oil prices are a net positive for the US economy, shrugging off concerns over low inflation.
Last week’s sizzling jobs data has signaled the significant labour market recovery in the world’s biggest economy, raising bets of a mid-2015 interest rate hike, dimming the appeal of the bullion as a store of value.
Gold may rise today after European leaders failed to reach an agreement over Greece’s bailout program following talks in Brussels, boosting safe haven demand for the bullion.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,665 per 10 gram, down by 0.71 per cent after opening at Rs 26,874, against the previous closing price of Rs 26,856 It touched the intra-day low of Rs 26,621till the closing.

Fed hopes lift Bullion 06/02/2015

Fed hopes lift Bullion
06/02/2015 09:32
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after a weaker dollar boosted the demand for the bullion as an alternative asset.
Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
A top US Federal Reserve official urged policymakers to remain patient over rate tightening amid very low inflation while an uptick in jobless claims last week and a widening trade gap also boosted the case for pushing back the timeline to raise borrowing costs in the world’s biggest economy for the first time since 2006, lifting the demand for the bullion as a store of value. Boston Federal Reserve President Eric Rosengren stressed that the Fed should not be in a hurry to raise interest rates amid weak inflation.
Gold may trade on a subdued note today amid caution ahead of the key US January non-farm payrolls data to be unveiled today which may show that the world’s biggest economy added more than 200K jobs for a twelfth month on the trot.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,757 per 10 gram, up by 0.10 per cent after opening at Rs 27,875, against the previous closing price of Rs 27,729. It touched the intra-day high of Rs 28,500 till the closing.

China easing, Greek jitters boost Bullion 05/02/2015

China easing, Greek jitters boost Bullion
05/02/2015 09:25
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) tightened the terms of Greece’s bailout, adding pressure on the Mediterranean nation’s new government which is diverging from an austerity path, raising fears over the country’s exit from the currency union which may spark a fresh financial contagion in Europe, boosting the safe haven demand for the bullion.
The ECB restricted access to direct liquidity lines amid concerns over Greece’s commitment to existing bailout packages.
China’s central bank cut the reserve requirements for lenders by 50 basis points, the first such reduction since 2012, in a bid to lift growth in the world’s second biggest economy, bolstering the appeal of Gold, which is a hedge against the inflationary risk of monetary stimulus.
Gold may continue its advance today on rising safe haven demand amid Europe fears while investor eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,729 per 10 gram, up by 0.84 per cent after opening at Rs 27,560, against the previous closing price of Rs 27,498. It touched the intra-day high of Rs 27,815 till the closing.

Profit booking pulls down bullion 03/02/2015

Profit booking pulls down bullion
03/02/2015 09:30
Gold futures ended lower in the domestic and overseas market on Monday as investors and speculators resorted to profit booking after a stellar rally in the previous session when speculation rose that the US Federal Reserve may refrain from raising interest rates in the near-term as the economy slows, bolstering the demand for the bullion as a store of value.
The slowest expansion in US manufacturing in a year in January and a fall in consumer spending last month signaled a weakening economic recovery in the world’s biggest economy.
However, a rebound in US equities curbed the demand for gold as an alternative asset.
Gold futures may rise today as investors eye US December factory orders data which may signal further weakness in the US economy, boosting safe haven demand for the bullion.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,840 per 10 gram, down by 0.20 per cent after opening at Rs 27,946, against the previous closing price of Rs 27,895. It touched the intra-day low of Rs 27,723 till the closing.'

Stronger dollar hits Gold even as Fed maintains status quo 29/01/2015

Stronger dollar hits Gold even as Fed maintains status quo
29/01/2015 09:24
Gold futures ended lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Moreover, Chinese gold imports from Hong Kong plunged by a third in 2014, signaling weaker demand for the yellow metal in the world’s biggest gold consumer. Caution ahead of the FOMC policy decision later on Wednesday kept investors on sidelines even amid bets that the Fed may continue with its easy money policy stance against the backdrop of heightened global risks and plunging oil prices that threaten to push inflation further below the 2 per cent goal. Gold may fall today after the Fed raised its assessment of the US economy and job market even as it acknowledged global risks. The apex bank signaled “solid” expansion in the economy, against “moderate” performance seen in December while it saw “strong” job gains compared to “solid” last month. The Fed maintained its pledge to be “patient” over monetary tightening amid rising risks to the world’s biggest economy from a global slowdown. The world’s top central bank said that it will take into consideration “international developments” for deciding when to raise interest rates for the first time since 2006. At the MCX, Gold futures for February 2015 contract closed at Rs 27,759 per 10 gram, down by 0.51 per cent after opening at Rs 27,865, against the previous closing price of Rs 27,902. It touched the intra-day high of Rs 27,935 till the closing.'

Fed hopes push Bullion higher 28/01/2015

Fed hopes push Bullion higher
28/01/2015 09:32
Gold futures closed higher in the domestic and overseas market on Tuesday as a weaker dollar boosted the appeal of the precious metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand.
Further, hopes that the US Federal Reserve may continue to stick to record low interest rates at a policy announcement on Wednesday as faltering global growth threatens to weigh on the US economy while plunging oil prices push inflation further below the 2 per cent target, may bolstering the appeal of the yellow metal as a store of value. The Fed in December indicated that it may not raise borrowing costs until at least end April.
A surprise drop in US durable goods orders last month and the weakest growth in manufacturing activity in a year in January signaled a slowdown in American factories.
Gold may advance today as the Fed likely refrains from a rate hike.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,902 per 10 gram, up by 0.14 per cent after opening at Rs 27,765, against the previous closing price of Rs 27,864. It touched the intra-day high of Rs 27,988 till the closing.

Stronger greenback weighs on Gold 27/01/2015

Stronger greenback weighs on Gold
27/01/2015 09:19
Gold futures closed lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the demand for the bullion as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Further, caution ahead of the Greek mandate which was set to dictate the country’s future in the currency union and the two-day meeting of the US Federal Reserve beginning on Tuesday weighed on sentiment.
The Fed may stick to its ultra accommodative monetary policy as plunging crude prices threaten to push inflation further below the 2 per cent goal, bolstering the appeal of the bullion as a store of value.
Gold futures may trade lower today after European finance ministers said that they are willing to work with Greece’s new government as long as the government doesn’t request a debt writedown and force the country out of the euro, dimming safe haven demand for the bullion. The anti-austerity Syriza Party won Sunday’s Greek mandate.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,864 per 10 gram, down by 0.61 per cent after opening at Rs 28,010, against the previous closing price of Rs 28,036. It touched the intra-day low of Rs 27,791 till the closing

ECB measures lift yellow metal 23/01/2015

ECB measures lift yellow metal
23/01/2015 09:30
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) unleashed QE, committing to inject at least 1.1 trillion euro to boost inflation, bolstering the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
The ECB which kept its key benchmark rate at a record low of 0.05 per cent unveiled a bigger than expected asset-purchase program including private and public securities, as it seeks to avert the threat of deflation in the 19-member Euro area economy.
The ECB announced monthly asset purchases of up to 60 billion euro through September 2016. The ECB said that the measures may lift the Euro area inflation rate by 0.4 percentage point this year and by 0.3 percentage point in 2016.
Russia, the world’s fifth biggest holder of bullion reserves said that its gold reserves rose to about 38.8 million ounces by January 1 from 38.2 million ounces a month earlier.
A stronger dollar curbed the demand for the bullion as an alternative asset, trimming gains in the precious metal. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may extend gains today after ECB unveiled an aggressive QE program.
At the MCX, Gold futures for February 2015 contract closed at Rs 28,036 per 10 gram, up by 0.21 per cent after opening at Rs 27,941, against the previous closing price of Rs 27,977. It touched the intra-day high of Rs 28,236 till the closing.

ECB caution weighs on Bullion 22/01/2015

ECB caution weighs on Bullion
22/01/2015 09:21
Gold futures closed lower in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid caution ahead of the policy meeting of the European Central Bank (ECB) on Thursday where it is widely expected to unleash QE in a bid to help stave off the threat of deflation in the 19-member Euro area economy.
Two ECB officials said that ECB President Mario Draghi has proposed spending 50 billion euro a month or an annual 600 billion euro through December 2016. Markets have been expecting a 550 billion euro sovereign bond buying program. QE is positive for precious metals, which are a hedge against the inflationary risk of monetary stimulus.
Gains in equities curbed the demand for the precious metal as an alternative asset.
Assets in bullion-backed exchange traded products fell for the first time in a week, signaling weak investment demand. Holdings in the SPDR Trust, the biggest gold-backed exchange traded product (ETP) fell from 742.24 tons, the highest since October.
Gold may trade flat today ahead of ECB decision.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,977 per 10 gram, down by 0.38 per cent after opening at Rs 28,049, against the previous closing price of Rs 28,085. It touched the intra-day low of Rs 27,811 till the closing.

Yellow metal rides on ECB bets 21/01/2015

Yellow metal rides on ECB bets
21/01/2015 09:18
Gold futures ended higher in the domestic and overseas market on Tuesday as investors and speculators booked fresh positions in the precious metal as assets in bullion-backed exchange traded products rose for a third straight day, signaling a pickup in investment demand for gold on bets of global easy money policies to support the world economy. Holdings in the SPDR Trust, the biggest gold-backed exchange traded product (ETP) rose for a third day to 742.24 metric tons on Tuesday, the longest winning streak since December 11, 2014. Meanwhile, the European Central Bank (ECB) is likely to announce a bond buying program of probably 550 billion euro tomorrow in a bid to stave off the threat of deflation faced by the 19-member Euro area economy, bolstering the appeal of gold which is a hedge against the inflationary risk of monetary stimulus. Gold futures may extend a rally today on bets of ECB QE. At the MCX, Gold futures for February 2015 contract closed at Rs 28,085 per 10 gram, down by 1.39 per cent after opening at Rs 27,730, against the previous closing price of Rs 27,700. It touched the intra-day high of Rs 28,140 till the closing.

Safe haven appeal lifts Bullion 20/01/2015

Safe haven appeal lifts Bullion
20/01/2015 09:32
Gold futures closed on a bullish note in the domestic market on Monday, reaching a four-month high in the overseas market as investors and speculators booked fresh positions in the precious metal after the Swiss National Bank’s (SNB) surprise move to end the cap on the franc, allowing it to move freely against the euro boosted the safe have demand for the yellow metal as investor shed exposure to risky assets.
Plunging US consumer prices raised bets that the US Federal Reserve may delay a planned interest rate hike, bolstering the appeal of the bullion as a store of value.
Federal Reserve Bank of San Francisco President John Williams stressed little urgency to raise interest rates in the near-term as inflation stays far from the 2 per cent goal.
However, a stronger dollar curbed demand for the bullion as an alternative asset, trimming gains. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold futures may rise today amid hopes that the European Central Bank (ECB) may unveil a sovereign bond buying program this week.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,700 per 10 gram, up by 0.17 per cent after opening at Rs 27,650, against the previous closing price of Rs 27,654. It touched the intra-day high of Rs 27,770 till the closing.

Swiss National Bank’s move boosts Bullion 16/01/2015

Swiss National Bank’s move boosts Bullion
16/01/2015 09:38
Gold futures surged in the domestic and overseas market on Thursday as investors and speculators booked fresh positions in the precious metal as the Swiss National Bank’s (SNB) decision to suddenly scrap its commitment to keep the franc above 1.20 per euro led a flight to safe haven assets. The SNB scrapped a three-year policy of capping the Swiss franc against the euro which was aimed at shielding the country’s economy from the region’s sovereign debt crises. A weaker dollar boosted the demand for the yellow metal as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus bolstering demand. US wholesale prices plunged the most in three years in December 2014 amid a slump in fuel costs, raising bets that the US Federal Reserve may refrain from an interest rate hike in the near-term, bolstering the appeal of the yellow metal as a store of value. US wholesale pieces fell 0.3 per cent in December from the previous month, the biggest decline since October 2011. Gold may rise today as assets in bullion-backed exchange traded products surged amid robust safe haven demand. At the MCX, Gold futures for February 2015 contract closed at Rs 27,492 per 10 gram, up by 1.07 per cent after opening at Rs 27,066, against the previous closing price of Rs 27,201. It touched the intra-day high of Rs 27,546 till the closing.

Fed rate bets lift Bullion 15/01/2015

Fed rate bets lift Bullion
15/01/2015 09:28
Gold futures closed higher in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal as a drop in equities boosted the demand for the yellow metal as an alternative investment.
Further, a slowdown in the global economy following a reduction in global growth forecasts and worries over a Greek exit from the Euro area amidst the January 25 elections in the country boosted the safe haven appeal of the precious metal.
The World Bank cut its growth forecast for the global economy in 2015 to 3 per cent from 3.4 per cent estimated earlier amid a slowdown in Europe and China.
The biggest drop in US retail sales in nearly a year in December signaled a faltering recovery in the world’s biggest economy, fueling bets that the US Federal Reserve may refrain from raising interest rates in the near-term, bolstering the appeal of the bullion as a store of value.
A drop in oil prices to over a five and a half-year lows, coupled with a surprise dip in December wages has also signaled weaker US inflation in the coming months, bolstering the case for the Fed to keep its easy money policy intact in the near-term.
Gold futures may trade little changed today as investors eye the weekly US jobless claims data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,201 per 10 gram, up by 0.54 per cent after opening at Rs 27,020, against the previous closing price of Rs 27,055. It touched the intra-day high of Rs 27,260 till the closing.

Bullion logs slim gains on Greek jitters 14/01/2015

Bullion logs slim gains on Greek jitters
14/01/2015 09:36
Gold futures posted a slim advance in the domestic market on Tuesday as fears that Greece may exit the euro, coupled with a deepening turmoil in the oil market boosted the safe haven demand for the precious metal.
Opinion polls showed that Greek Prime Minister Antonis Samaras hasn’t narrowed the lead by his leading opponent from the Syriza party which has opposed the country’s painful austerity program. Speculation is rife that a change in the country’s political landscape with an anti-austerity party coming into power may put Greece’s bailout program in limbo, pushing it out of the Euro.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota warned policymakers that an interest rate hike in 2015 may impede the US economic recovery, bolstering the appeal of the bullion as a store of value.
Gold may trade on a cautious note today ahead of US December retail sales data.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,055 per 10 gram, up by 0.09 per cent after opening at Rs 27,145, against the previous closing price of Rs 27,030. It touched the intra-day high of Rs 27,262 till the closing

Bullion advances as investors asses Fed rate outlook 13/01/2015

Bullion advances as investors asses Fed rate outlook
13/01/2015 09:49
Gold futures closed higher in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as a decline in equities boosted the demand for the bullion as an alternative asset amid a deepening rout in oil which slid to the lowest level in more than five and a half years, curbing demand for risky assets and prompting investors to seek shelter in safe haven investments.
Plunging oil prices also threaten to push US inflation further below the US Federal Reserve’s 2 per cent target, holding back the central bank from raising interest rates for the first time since 2006, bolstering the demand for gold as a store of value.
Federal Reserve Bank of San Francisco President John Williams said that a rate hike in June would be a close decision amid strong labour market momentum and soft wage gains. While the US economy added over 200K jobs in December for an eleventh straight month, wages fell for the first time since 2006.
Gold may continue the upward journey today on bets that the Fed may not tighten policy in the near-tern.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,030 per 10 gram, up by 0.86 per cent after opening at Rs 26,875, against the previous closing price of Rs 26,800 It touched the intra-day high of Rs 27,114 till the closing.