Commodity Tips | Gold futures ended lower in the Asian market on Wednesday as investors and speculators exited positions in the precious metal tracking a weak trend in the overseas market as upbeat US economic data bolstered the case for the Fed to raise interest rates for the first time in almost a decade, curbing the lure for the bullion as a store of value.
Orders for US business equipment climbed in October, sales of new homes surged last month, consumer spending edged higher in October, and consumer confidence rose this month.
Further, private sector output in the US expanded at the fastest pace since April in November and the number of Americans filing to claim jobless benefits fell last week, signaling a pickup in the world’s biggest economy.
Gold, a non-interest bearing asset tends to lose sheen during a rising interest rate scenario.
Many officials from the Fed have also recently signaled a strong case for a December rate hike.
A stronger dollar also curbed the demand for Gold as an alternative asset. Stronger dollar makes the bullion more expensive for those holding other currencies, thus dimming requirement.
With US markets closed due to a Thanksgiving Holiday and speculation rising of a Fed rate lift-off, Gold futures may trade on a listless note today.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,222 per 10 gram, down by 0.26 per cent after opening at Rs 25,243, against the previous closing price of Rs 25,289. It touched the intra-day low of Rs 25,141.
Orders for US business equipment climbed in October, sales of new homes surged last month, consumer spending edged higher in October, and consumer confidence rose this month.
Further, private sector output in the US expanded at the fastest pace since April in November and the number of Americans filing to claim jobless benefits fell last week, signaling a pickup in the world’s biggest economy.
Gold, a non-interest bearing asset tends to lose sheen during a rising interest rate scenario.
Many officials from the Fed have also recently signaled a strong case for a December rate hike.
A stronger dollar also curbed the demand for Gold as an alternative asset. Stronger dollar makes the bullion more expensive for those holding other currencies, thus dimming requirement.
With US markets closed due to a Thanksgiving Holiday and speculation rising of a Fed rate lift-off, Gold futures may trade on a listless note today.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,222 per 10 gram, down by 0.26 per cent after opening at Rs 25,243, against the previous closing price of Rs 25,289. It touched the intra-day low of Rs 25,141.
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