Commodity Tips | Gold futures ended lower in the domestic
market on Monday as investors and speculators exited positions in the
precious metal tracking weakness in the overseas market where prices of
Gold closed at the lowest level since February 2010 as speculation of an
imminent interest rate hike by the US Federal Reserve curbed the lure
for the bullion as a store of value.
The President of the Federal Reserve Bank of San Francisco John Williams
has reiterated the case for raising interest rates next month, for the
first time in nearly a decade, assuming economic data remained
encouraging.
Minutes from the US Fed’s latest meet, released last week, showed that
most policymakers thought it may be appropriate to raise borrowing costs
next month.
A stronger dollar also curbed the lure for Gold as an alternative asset.
Stronger dollar makes Gold more expensive for those holding other
currencies, thus dimming demand.
Gold may remain lower today as traders resort to a cautious approach ahead of the US Q3 GDP data.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,165
per 10 gram, down by 0.31 per cent after opening at Rs 25,183, against
the previous closing price of Rs 25,243. It touched the intra-day low of
Rs 25,081.
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