Commodity Tips: Gold futures tumbled more than 1.2% in the national market on Friday as investors and speculators exited positions in the bullion tracking a bearish trend in the overseas market as better than expected US jobs data boosted speculation that the US Fed Reserve may raise interest rates in December, dimming the appeal of the bullion as a store of value.
Non-farm payrolls climbed by 271,000 in October, the biggest monthly gain in 2015, up from a revised 137,000 in September. Analysts were expecting the US economy to add 185,000 workers in October. Revisions to data added 12,000 jobs in the month of August and September.
Further, the jobless rate fell to 5 per cent in October, the lowest since April 2008. Average hourly earnings rose the most since 2009, up by 0.4 per cent in October from September.
St. Louis Fed Reserve Bank President James Bullard said that the US economy is ready for a lift-off in interest rates.
A spike in the US dollar curbed the lure for the Gold as an alternative asset. Stronger dollar makes gold more precious for those holding other currencies, thus dimming demand.
Bullion futures may extend a slide today amidst fears over US policy tightening.
At the MCX, Gold futures for December 2015 agreement closed at 25,523 Rs per 10 gram, down by 1.23 per cent after opening at Rs 25,815, against the last closing price of Rs 25,841. It touched the intra-day low of Rs 25,464.
Non-farm payrolls climbed by 271,000 in October, the biggest monthly gain in 2015, up from a revised 137,000 in September. Analysts were expecting the US economy to add 185,000 workers in October. Revisions to data added 12,000 jobs in the month of August and September.
Further, the jobless rate fell to 5 per cent in October, the lowest since April 2008. Average hourly earnings rose the most since 2009, up by 0.4 per cent in October from September.
St. Louis Fed Reserve Bank President James Bullard said that the US economy is ready for a lift-off in interest rates.
A spike in the US dollar curbed the lure for the Gold as an alternative asset. Stronger dollar makes gold more precious for those holding other currencies, thus dimming demand.
Bullion futures may extend a slide today amidst fears over US policy tightening.
At the MCX, Gold futures for December 2015 agreement closed at 25,523 Rs per 10 gram, down by 1.23 per cent after opening at Rs 25,815, against the last closing price of Rs 25,841. It touched the intra-day low of Rs 25,464.
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