MCX Bullions Tips - Gold futures succumbed to modest losses in the domestic market on Wednesday as investors and speculators exited positions in the precious metal as a stronger dollar curbed the lure for the bullion as an alternative asset.
hard greenback makes Gold more costly for those holding other currencies, thus dimming demand.
hard greenback makes Gold more costly for those holding other currencies, thus dimming demand.
While the US Federal Reserve stuck to record low interest rates, it sujjested an upbeat sight of the world’s biggest economy, thus remaining on course for rate tightening later this year, dimming the appeal of the bullion as a store of value. The Fed stressed that job gains had been solid, while dropping the modifier “somewhat” from its description of the decline in labour market slack, keeping the door open for a hike in borrowing costs for the first time since 2006, this year.
Mcx Bullions Tips - Even as the FOMC refrained from providing markets, a clear signal of the timing of the interest rate lift-off, the world’s top middle bank has indicated that the decision would be “data dependent”, meaning that if the economy continues to improve on await lines i.e. the labour market shows some further improvement and the Fed is reasonably confident that inflation is moving back to the 2 per cent goal, then policy tightening will be justified probably as early as September or later this year.
Gold may trade on a cautious note today ahead of the Q2 US GDP data set for release today which may show that the American economy expanded at an annualized rate of 2.5 per cent following a 0.2 per cent contraction in the March quarter.
At the MCX, Gold futures for August 2015 contract closed at Rs 24,720 per 10 gram, down by 0.13 per cent after starting at Rs 24,778, opposed the back closing price of Rs 24,752. It touched the intra-day low of Rs 24,691.
Mcx Bullions Tips - Even as the FOMC refrained from providing markets, a clear signal of the timing of the interest rate lift-off, the world’s top middle bank has indicated that the decision would be “data dependent”, meaning that if the economy continues to improve on await lines i.e. the labour market shows some further improvement and the Fed is reasonably confident that inflation is moving back to the 2 per cent goal, then policy tightening will be justified probably as early as September or later this year.
Gold may trade on a cautious note today ahead of the Q2 US GDP data set for release today which may show that the American economy expanded at an annualized rate of 2.5 per cent following a 0.2 per cent contraction in the March quarter.
At the MCX, Gold futures for August 2015 contract closed at Rs 24,720 per 10 gram, down by 0.13 per cent after starting at Rs 24,778, opposed the back closing price of Rs 24,752. It touched the intra-day low of Rs 24,691.
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