MCX bullions Tips - The gold metal lost more sheen on this Wednesday after Fed Chair Janet Yellen signaled an increased likelihood of the world’s top central bank raising interest rates this year, dimming the lure for the bullion as a store of value.
Yellen said in a testimony that the Federal Reserve remains on course for undertaking a maiden interest rate lift-off since 2006 before 2015 draws to a close if the economy and labour markets continue to see improvement.
Meanwhile, US producer price gains topped forecasts, rising 0.4 per cent in June 2015 from May, when they climbed 0.5 per cent, signaling a pickup in inflation, bolstering the case for rate tightening.
Moreover, US industrial production rebounded to growth in June following a 0.2 per cent drop in May, signaling a pickup in the world’s biggest economy, dimming Gold’s safe haven appeal.
The strength of the US dollar cut the demand for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
The precious metal is tipped to extend losses today as fears over Grexit ebb after the Greek Parliament gave the green signal to the nation’s bailout agreement with Europe, keeping the country within the euro.
At the MCX, Gold futures for August 2015 contract closed at Rs 25,847 per 10 gram, down by 0.31 per cent after opening at Rs 25,953, against the previous closing price of Rs 25,927. It touched the intra-day low of Rs 25,764 till the closing.
Yellen said in a testimony that the Federal Reserve remains on course for undertaking a maiden interest rate lift-off since 2006 before 2015 draws to a close if the economy and labour markets continue to see improvement.
Meanwhile, US producer price gains topped forecasts, rising 0.4 per cent in June 2015 from May, when they climbed 0.5 per cent, signaling a pickup in inflation, bolstering the case for rate tightening.
Moreover, US industrial production rebounded to growth in June following a 0.2 per cent drop in May, signaling a pickup in the world’s biggest economy, dimming Gold’s safe haven appeal.
The strength of the US dollar cut the demand for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
The precious metal is tipped to extend losses today as fears over Grexit ebb after the Greek Parliament gave the green signal to the nation’s bailout agreement with Europe, keeping the country within the euro.
At the MCX, Gold futures for August 2015 contract closed at Rs 25,847 per 10 gram, down by 0.31 per cent after opening at Rs 25,953, against the previous closing price of Rs 25,927. It touched the intra-day low of Rs 25,764 till the closing.
No comments:
Post a Comment