MCX GOLD TIPS | Gold futures were trading higher during late morning trade in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal as additional monetary stimulus from the European Central Bank (ECB) more than offset prospects of higher interest rates in the United State.
The ECB said that it will extend its bond buying program by six months until at least March 2017 at the current pace of 60 billion euros a month and will broaden its asset purchases by including local and regional debt. The deposit rate was cut by 10 basis points to -0.3 per cent.
Meanwhile, the United State Fed remains on track to raise interest rates for the first time since 2006 this month after Fed Chair Janet Yellen signaled that conditions for raising borrowing costs in the world’s biggest economy had been met. The focus is on United State jobs data today which may show that the United State economy added a robust 200K jobs in November while the unemployment rate stayed at 5%, the lowest in seven years, bolstering the case for policy tightening at the Fed’s upcoming two-day meet on Dec 15-16.
At the MCX, Gold futures for Dec 2015 contract is trading at Rs 25,105 per 10 gram, up by 0.67% after opening at Rs 25,095, against the previous closing price of Rs 24,937. It touched the intra-day high of Rs 25,110. (At 12:02 PM).
The ECB said that it will extend its bond buying program by six months until at least March 2017 at the current pace of 60 billion euros a month and will broaden its asset purchases by including local and regional debt. The deposit rate was cut by 10 basis points to -0.3 per cent.
Meanwhile, the United State Fed remains on track to raise interest rates for the first time since 2006 this month after Fed Chair Janet Yellen signaled that conditions for raising borrowing costs in the world’s biggest economy had been met. The focus is on United State jobs data today which may show that the United State economy added a robust 200K jobs in November while the unemployment rate stayed at 5%, the lowest in seven years, bolstering the case for policy tightening at the Fed’s upcoming two-day meet on Dec 15-16.
At the MCX, Gold futures for Dec 2015 contract is trading at Rs 25,105 per 10 gram, up by 0.67% after opening at Rs 25,095, against the previous closing price of Rs 24,937. It touched the intra-day high of Rs 25,110. (At 12:02 PM).
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