Bullion slips amid US rate tightening fears
31/03/2015 09:48
Gold futures closed lower in the domestic and overseas market on Monday as investors and speculators exited positions in the precious metal as investors bet that the US Federal Reserve will begin monetary tightening in the coming months, dimming the appeal of the bullion as a store of value.
While Fed Chair Janet Yellen stressed that the pace of rate lift-offs will be gradual she saw a rate hike in 2015 itself. The Federal Reserve’s preferred inflation gauge rose by 1.4 per cent in February 2015 from the same month a year ago, staying below the 2 per cent target since March 2012, as low inflation continued to dent gold’s appeal as an inflation hedge.
Gold may stay lower today ahead of speeches from key Federal Reserve officials who may offer hints over the exact timing of US interest rate hike.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,270 per 10 gram, down by 1.12 per cent after opening at Rs 26,430, against the previous closing price of Rs 26,569. It touched the intra-day low of Rs 26,235 till the closing.
31/03/2015 09:48
Gold futures closed lower in the domestic and overseas market on Monday as investors and speculators exited positions in the precious metal as investors bet that the US Federal Reserve will begin monetary tightening in the coming months, dimming the appeal of the bullion as a store of value.
While Fed Chair Janet Yellen stressed that the pace of rate lift-offs will be gradual she saw a rate hike in 2015 itself. The Federal Reserve’s preferred inflation gauge rose by 1.4 per cent in February 2015 from the same month a year ago, staying below the 2 per cent target since March 2012, as low inflation continued to dent gold’s appeal as an inflation hedge.
Gold may stay lower today ahead of speeches from key Federal Reserve officials who may offer hints over the exact timing of US interest rate hike.
At the MCX, Gold futures for April 2015 contract closed at Rs 26,270 per 10 gram, down by 1.12 per cent after opening at Rs 26,430, against the previous closing price of Rs 26,569. It touched the intra-day low of Rs 26,235 till the closing.
