Rising safe haven demand lifts Gold
12/12/2014 09:12
Gold futures ended higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal as a recent global market rout boosted the demand for the bullion as a safe haven asset.
Rising demand in China, the world’s biggest gold consumer also supported the yellow metal as volumes for the benchmark spot gold contract surged to the highest level in three weeks in Shanghai.
A rise in investment demand for gold also lifted sentiment as assets in the SPDR Gold Trust, the biggest gold-backed exchange traded product (ETP) rose to 725.75 metric tons.
However, a stronger dollar curbed the demand for the bullion as an alternative asset, while better than expected US retail sales and jobless claims data raised bets of early monetary tightening, dimming the appeal of the bullion as a store of value, trimming gains in gold futures.
Gold futures may trade on a cautious note today ahead of US consumer sentiment data.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,258 per 10 grams, up by 0.25 per cent, after opening at Rs. 27,161, against the previous closing price of Rs 27,191. It touched an intra-day high of Rs 27,359.
12/12/2014 09:12
Gold futures ended higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal as a recent global market rout boosted the demand for the bullion as a safe haven asset.
Rising demand in China, the world’s biggest gold consumer also supported the yellow metal as volumes for the benchmark spot gold contract surged to the highest level in three weeks in Shanghai.
A rise in investment demand for gold also lifted sentiment as assets in the SPDR Gold Trust, the biggest gold-backed exchange traded product (ETP) rose to 725.75 metric tons.
However, a stronger dollar curbed the demand for the bullion as an alternative asset, while better than expected US retail sales and jobless claims data raised bets of early monetary tightening, dimming the appeal of the bullion as a store of value, trimming gains in gold futures.
Gold futures may trade on a cautious note today ahead of US consumer sentiment data.
Gold futures for February 2015 contract, at MCX, is trading at Rs. 27,258 per 10 grams, up by 0.25 per cent, after opening at Rs. 27,161, against the previous closing price of Rs 27,191. It touched an intra-day high of Rs 27,359.
