FOMC minutes, stronger dollar weigh on Bullion
08/01/2015 09:47
Gold futures closed lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the precious metal as a rebound in stock markets and a stronger US dollar which closed near a record high dampened the demand for the bullion as an alternative asset.
Stronger greenback makes the yellow metal more expensive for those holding other currencies, thus dimming demand.
Sentiment weakened after the minutes from the US Federal Reserve’s December policy meet signaled that the Fed was on track to raise interest rates for the first time since 2006 sometime this year as the US economy improves, dimming the appeal of the bullion as a store of value. Although, the apex bank ruled out a rate hike until end-April, the minutes showed.
Gold futures may continue the downward slide ahead of tomorrow’s US non-farm payrolls data which may show an eleventh month of above 200K job gains, curbing safe haven demand for gold.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,161 per 10 gram, down by 0.85 per cent after opening at Rs 27,348, against the previous closing price of Rs 27,394. It touched the intra-day low of Rs 27,120 till the closing
08/01/2015 09:47
Gold futures closed lower in the domestic and overseas market on Wednesday as investors and speculators exited positions in the precious metal as a rebound in stock markets and a stronger US dollar which closed near a record high dampened the demand for the bullion as an alternative asset.
Stronger greenback makes the yellow metal more expensive for those holding other currencies, thus dimming demand.
Sentiment weakened after the minutes from the US Federal Reserve’s December policy meet signaled that the Fed was on track to raise interest rates for the first time since 2006 sometime this year as the US economy improves, dimming the appeal of the bullion as a store of value. Although, the apex bank ruled out a rate hike until end-April, the minutes showed.
Gold futures may continue the downward slide ahead of tomorrow’s US non-farm payrolls data which may show an eleventh month of above 200K job gains, curbing safe haven demand for gold.
At the MCX, Gold futures for February 2015 contract closed at Rs 27,161 per 10 gram, down by 0.85 per cent after opening at Rs 27,348, against the previous closing price of Rs 27,394. It touched the intra-day low of Rs 27,120 till the closing
