MCX Bullions Tips - Against the backdrop of worries over a near-term Fed rate hike, ebbing safe haven demand and a roaring greenback, the yellow metal extended losses from a five-year low, tanking nearly 2 per cent in the domestic market on Monday.
Holdings in bullion-backed exchange traded funds fell to the lowest level in nearly seven years, signaling Gold’s fast dimming investment appeal. Assets in the SPDR Gold confiodence, the largest Gold-backed barter traded fund slumped to the lowest level since September 2008 when the subside of Lehman Brothers triggered the exceptional Recession.
MCX Bullions Tips - supposition that the US confederate Reserve will raise interest rates for the first time since 2006, in the coming months as inflation shows signs of picking up and the labour market improves, hurt Gold’s appeal as a store of value, while firing up the dollar, and hence curbing the lure for the bullion as an alternative asset.
powerful greenback makes Gold more costly for those holding other currencies, thus dimming demand.
Meanwhile, easing fears over Greece also cut Gold’s safe haven demand as Greek banks opened following a three-week shutdown while the country made a 2 billion euro repayment to the IMF.
Gold may script a small rebound today as steep losses in previous sessions may trigger bargain buying in the metal.
At the MCX, Gold futures for August 2015 contract closed at Rs 25,034 per 10 gram, down by 1.82 per cent after starting at Rs 25,475, opposed the back ended price of Rs 25,498. It touched the intra-day low of Rs 24,904.
Holdings in bullion-backed exchange traded funds fell to the lowest level in nearly seven years, signaling Gold’s fast dimming investment appeal. Assets in the SPDR Gold confiodence, the largest Gold-backed barter traded fund slumped to the lowest level since September 2008 when the subside of Lehman Brothers triggered the exceptional Recession.
MCX Bullions Tips - supposition that the US confederate Reserve will raise interest rates for the first time since 2006, in the coming months as inflation shows signs of picking up and the labour market improves, hurt Gold’s appeal as a store of value, while firing up the dollar, and hence curbing the lure for the bullion as an alternative asset.
powerful greenback makes Gold more costly for those holding other currencies, thus dimming demand.
Meanwhile, easing fears over Greece also cut Gold’s safe haven demand as Greek banks opened following a three-week shutdown while the country made a 2 billion euro repayment to the IMF.
Gold may script a small rebound today as steep losses in previous sessions may trigger bargain buying in the metal.
At the MCX, Gold futures for August 2015 contract closed at Rs 25,034 per 10 gram, down by 1.82 per cent after starting at Rs 25,475, opposed the back ended price of Rs 25,498. It touched the intra-day low of Rs 24,904.
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