Stronger dollar bites Bullion
09/01/2015 09:31
Gold futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger US dollar dampened the demand for the yellow metal as an alternative asset.
Stronger greenback makes the precious metal more expensive for those holding other currencies, thus dimming demand.
The rebound in oil prices and a return to calm in global stock markets also dimmed the safe haven appeal of the bullion, contributing to the sell-off in Gold futures.
Caution ahead of the US non-farm payrolls data due on Friday which may show an eleventh straight monthly gain of above 200K jobs in the economy also weighed on sentiment.
Investors cast aside comments from a top US Federal Reserve official who warned against the risk of raising interest rates too soon despite an improvement in the economy, as inflation remains below target, supporting the demand for gold as a store of value.
Gold futures may fall today amid caution ahead of US jobs data which may determine the outlook for borrowing costs.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,801 per 10 gram, down by 1.33 per cent after opening at Rs 27,125, against the previous closing price of Rs 27,161. It touched the intra-day low of Rs 26,760 till the closing.
09/01/2015 09:31
Gold futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the precious metal tracking a bearish trend in the overseas market as a stronger US dollar dampened the demand for the yellow metal as an alternative asset.
Stronger greenback makes the precious metal more expensive for those holding other currencies, thus dimming demand.
The rebound in oil prices and a return to calm in global stock markets also dimmed the safe haven appeal of the bullion, contributing to the sell-off in Gold futures.
Caution ahead of the US non-farm payrolls data due on Friday which may show an eleventh straight monthly gain of above 200K jobs in the economy also weighed on sentiment.
Investors cast aside comments from a top US Federal Reserve official who warned against the risk of raising interest rates too soon despite an improvement in the economy, as inflation remains below target, supporting the demand for gold as a store of value.
Gold futures may fall today amid caution ahead of US jobs data which may determine the outlook for borrowing costs.
At the MCX, Gold futures for February 2015 contract closed at Rs 26,801 per 10 gram, down by 1.33 per cent after opening at Rs 27,125, against the previous closing price of Rs 27,161. It touched the intra-day low of Rs 26,760 till the closing.
