Commodity Tips: Gold futures rebounded in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal as national demand rose amidst the festival of Dhanteras, which is an auspicious day to buy gold.
Weakness in the rupee against the US $ also exerted upward pressure on the bullion. The rupee slid to over a month-low against the greenback as upbeat US jobs data bolstered Fed rate hike bets in December.
Speculation of further policy easing from China amidst a fourth straight slide in the country’s exports and a plunge in imports, in October, also bolstered bullion, a hedge against the inflationary risk of monetary stimulus.
Gold regained some lost ground in the overseas market on Monday as a weaker dollar bolstered the appeal of the bullion as an alternative asset. Weaker greenback makes the gold cheaper for those holding other currencies.
The gains in Gold were trimmed by concerns over US monetary tightening in the near-term, curbing the lure for the yellow metal as a store of value. Federal Reserve Bank of Boston President said that robust US economic data supports the case for a rate lift-off as early as next month.
Gold may slip back into losses today amidst fears over US interest rate hike.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,686 per 10 gram, up by 0.64 per cent after opening at Rs 25,722, against the previous closing price of Rs 25,523. It touched the intra-day high of Rs 25,763.
Weakness in the rupee against the US $ also exerted upward pressure on the bullion. The rupee slid to over a month-low against the greenback as upbeat US jobs data bolstered Fed rate hike bets in December.
Speculation of further policy easing from China amidst a fourth straight slide in the country’s exports and a plunge in imports, in October, also bolstered bullion, a hedge against the inflationary risk of monetary stimulus.
Gold regained some lost ground in the overseas market on Monday as a weaker dollar bolstered the appeal of the bullion as an alternative asset. Weaker greenback makes the gold cheaper for those holding other currencies.
The gains in Gold were trimmed by concerns over US monetary tightening in the near-term, curbing the lure for the yellow metal as a store of value. Federal Reserve Bank of Boston President said that robust US economic data supports the case for a rate lift-off as early as next month.
Gold may slip back into losses today amidst fears over US interest rate hike.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,686 per 10 gram, up by 0.64 per cent after opening at Rs 25,722, against the previous closing price of Rs 25,523. It touched the intra-day high of Rs 25,763.
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