Mild gains for Bullion on Fed bets
14/11/2014 09:30
Gold futures booked mild gains in the domestic market on Thursday as weaker than expected US jobless claims data signaled a slack in the labour market of the world’s biggest economy, raising bets that the US Federal Reserve may not tighten monetary policy sooner than earlier expected. Jobless claims advanced by 12,000 to 290,000 last week, above expectations of a rise to 280,000. Meanwhile, a top Fed official also warned against a premature rate hike, boosting the appeal of the bullion as a store of value. Federal Reserve Bank of New York President William Dudley said that hiking borrowing costs too early is a much bigger risk that acting late. However, a slump in global gold demand to a near five-year low last quarter curbed gains in the precious metal. Global gold demand fell 2.5 per cent to the lowest level since Q4 2009 at 929.3 metric tons in the July-September 2014 period from the year ago period, the World Gold Council said. Gold futures may fall today amid weak investment demand and caution ahead of US retail sales data. Gold futures for December 2014 contract, at MCX, closed at Rs. 25,822 per 10 grams, up by 0.13 per cent, after opening at Rs. 25,942, against the previous closing price of Rs 25,788. It touched an intra-day low of Rs 25,930.
14/11/2014 09:30
Gold futures booked mild gains in the domestic market on Thursday as weaker than expected US jobless claims data signaled a slack in the labour market of the world’s biggest economy, raising bets that the US Federal Reserve may not tighten monetary policy sooner than earlier expected. Jobless claims advanced by 12,000 to 290,000 last week, above expectations of a rise to 280,000. Meanwhile, a top Fed official also warned against a premature rate hike, boosting the appeal of the bullion as a store of value. Federal Reserve Bank of New York President William Dudley said that hiking borrowing costs too early is a much bigger risk that acting late. However, a slump in global gold demand to a near five-year low last quarter curbed gains in the precious metal. Global gold demand fell 2.5 per cent to the lowest level since Q4 2009 at 929.3 metric tons in the July-September 2014 period from the year ago period, the World Gold Council said. Gold futures may fall today amid weak investment demand and caution ahead of US retail sales data. Gold futures for December 2014 contract, at MCX, closed at Rs. 25,822 per 10 grams, up by 0.13 per cent, after opening at Rs. 25,942, against the previous closing price of Rs 25,788. It touched an intra-day low of Rs 25,930.
