MCX GOLD TIPS | Gold futures ended on a bearish note in the Asian market on Tuesday as investors and speculators resorted to a cautious stance ahead of Fed Chair Janet Yellen’s speech on Wednesday in which she may offer cues over the likelihood of a US interest rate lift-off this month.
Meanwhile traders are also eyeing the US November jobs data set for release on Friday, with a strong labor market report likely to bolster the case for Fed rate tightening in the near-term.
Gold, a non-interest bearing asset loses sheen in a rising interest rate scenario.
However, the bullion was supported by speculation that the Fed may take a gradual approach to hiking interest rates even if it decides to undertake the initial lift-off this month, as the fastest pace of US manufacturing contraction since 2009 in November raised doubts over the US economic recovery.
Chicago Fed President Charles Evans called for a later lift-off in borrowing costs while favouring a gradual path of rate normalization.
Gold may trade on a quite note today as traders stay cautious ahead of Janet Yellen’s speech.
At the MCX, Gold futures for Dec 2015 contract closed at Rs 24,994 per 10 gram, down by 0.30 per cent after opening at Rs 25,183, against the last closing price of Rs 25,069. It touched the intra-day low of Rs 24,973.
Meanwhile traders are also eyeing the US November jobs data set for release on Friday, with a strong labor market report likely to bolster the case for Fed rate tightening in the near-term.
Gold, a non-interest bearing asset loses sheen in a rising interest rate scenario.
However, the bullion was supported by speculation that the Fed may take a gradual approach to hiking interest rates even if it decides to undertake the initial lift-off this month, as the fastest pace of US manufacturing contraction since 2009 in November raised doubts over the US economic recovery.
Chicago Fed President Charles Evans called for a later lift-off in borrowing costs while favouring a gradual path of rate normalization.
Gold may trade on a quite note today as traders stay cautious ahead of Janet Yellen’s speech.
At the MCX, Gold futures for Dec 2015 contract closed at Rs 24,994 per 10 gram, down by 0.30 per cent after opening at Rs 25,183, against the last closing price of Rs 25,069. It touched the intra-day low of Rs 24,973.
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