Tuesday, 31 March 2015

COMMODITY: MCX GOLD SILVER UPDATES

Date: 31.03.2015

Precious Metals
Gold futures closed lower in the domestic market on Friday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as easing geopolitical concerns regarding Yemen curbed the demand for the bullion as an alternative asset. However, a weaker dollar boosted the demand for gold as an alternative asset, supporting the yellow metal. Weaker greenback makes gold cheaper for those holding other currencies, thus bolstering demand. Gold may extend a decline today as caution persists ahead of US consumer spending data. At the MCX Gold futures for April 2015 contract closed at Rs 26,569 per 10 gram, down by 0.87 percent after opening at Rs 26,675, against the previous closing price of Rs 26,801. It touched the intra-day low of Rs 26,387 till the closing. 

Silver futures tumbled in the domestic market on Monday as investors and speculators exited positions in the precious metal after Fed Chair Janet Yellen said that she expects the FOMC to begin monetary tightening this year, with subsequent rate lift-offs to be gradual rather than following a predictable path, dimming the appeal of the bullion as a store of value. Further, a stronger dollar dampened the demand for the bullion as an alternative asset. Stronger dollar curbed the demand for the precious metal as an alternative asset. At the MCX Silver futures for May 2015 contract is trading at Rs 37,963 per 1 kg, down by 1.13 per cent after opening at Rs 38,200, against the previous closing price of Rs 38,395. It touched the intra-day low of Rs 37,886 till the closing.

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