Precious Metals
GOLD
Gold futures ended lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the lure for gold as an alternative investment. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Two US Federal Reserve officials stressed that the world’s top central bank may raise interest rates as early as June as economic data strengthens after a poor first quarter when the world’s biggest economy was hit by “transitory factors”, curbing the lure for the bullion as a store of value. Further, Friday’s major economic releases also signaled a pickup in the economy with consumer sentiment climbing to the second-highest level since 2007 last month while US factories reporting higher production and orders in April. Gold may extend a decline today amid renewed expectations of a near-term Fed rate hike. At the MCX Gold futures for June 2015 contract closed at Rs 26,636 per 10 gram, down by 0.30 percent after opening at Rs 26,660, against the previous closing price of Rs 26,716. It touched the intra-day low of Rs 26,490 till the closing.
Gold futures ended lower in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the lure for gold as an alternative investment. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Two US Federal Reserve officials stressed that the world’s top central bank may raise interest rates as early as June as economic data strengthens after a poor first quarter when the world’s biggest economy was hit by “transitory factors”, curbing the lure for the bullion as a store of value. Further, Friday’s major economic releases also signaled a pickup in the economy with consumer sentiment climbing to the second-highest level since 2007 last month while US factories reporting higher production and orders in April. Gold may extend a decline today amid renewed expectations of a near-term Fed rate hike. At the MCX Gold futures for June 2015 contract closed at Rs 26,636 per 10 gram, down by 0.30 percent after opening at Rs 26,660, against the previous closing price of Rs 26,716. It touched the intra-day low of Rs 26,490 till the closing.
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