Precious Metals
Gold futures closed
higher in the domestic market on Friday as the sharp depreciation of
the
Indian rupee against the US dollar exerted upward pressure on
prices of the bullion in the
domestic market; more than offsetting
the flat closing in the overseas market. The yellow metal
closed
little changed in the overseas market on Friday as investors and
speculators shied away
from booking fresh positions in the bullion
as a stronger dollar curbed the demand for gold as
an alternative
asset. Stronger greenback makes gold more expensive for those holding
other
currencies, thus dimming demand. Caution ahead of the US
Federal Reserve’s policy meet this
week where the Fed may drop the
word “patient” over monetary tightening, and probably signal
a
rate hike towards the middle of the year also curbed the demand for
the bullion as a store of
value. Meanwhile, US wholesale prices fell
for a fourth straight month, down 0.5 per cent in
February, dimming
the bullion’s appeal as a hedge against inflation. Gold may fall
today as
investors stick to a cautious stance ahead of the FOMC meet
this week. At the MCX Gold
futures for April 2015 contract closed
at Rs 25,890 per 10 gram, up by 0.92 per cent after
opening at Rs
25,720, against the previous closing price of Rs 25,655. It touched
the intra-day
high of Rs 25,918 till the closing.
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