DATE: 10.04.2015
Gold futures fell by 0.89 percent on Thursday at the domestic markets after US Federal Reserve minutes revealed that an interest rate hike could take place as early as June, causing the dollar to turn higher. The March meeting concluded with the Fed opening the door to a June rate hike, and the minutes said that "several participants" went on record saying they expected that upcoming economic data would warrant an initial rate increase that month. A stronger dollar reduced the appeal of the commodity as an alternative asset. Stronger greenback makes gold expensive for those holding other currencies thus reducing demand. At the MCX Gold futures for June 2015 contract was trading at Rs 26,522 per 10 gram, down by 0.89 percent after opening at Rs 26,700, against the previous closing price of Rs 26,760. It touched the intra-day low of Rs 26,466 till the trading.
Silver futures tumbled in the domestic market on Thursday as investors and speculators exited positions in the precious metal after minutes from the Fed’s latest policy meet, in March, released on Wednesday, signaled that many FOMC policymakers called for a rate lift-off in June, dimming the appeal of the bullion as a store of value.“Several participants judged that the economic data and outlook were likely to warrant beginning normalization at the June meeting,” the minutes showed. At the MCX, Silver futures for May 2015 contract is trading at Rs 36,470 per 1 kg, down by 1.32 percent after opening at Rs 36,777, against the previous closing price of Rs 36,958. It touched the intra-day low of Rs 36,290.
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