MCX GOLD TIPS | Gold prices fell by 0.54% on Thursday with markets increasingly confident of a Federal Reserve rate hike next week. Investors goes on to prepare for next week's critical Federal Reserve meeting where the U.S. central bank is largely expected to raise short-term interest rates for the 1st time in nearly a decade. A rate hike is viewed as bearish for Bullion, which is not attached to interest rates and struggles to compete with high-yield bearing assets.
Gold futures for February 2016 agreement, at MCX, were trading at Rs. 25,463 per 10 grams, down by 0.54 per cent after opening at Rs. 25,515 against the last closing price of Rs. 25,602. It touched the intra-day low of Rs. 25,460 till the trading.
Further, a stronger $ reduced the appeal of gold as an alternative asset. Stronger greenback makes the Gold expensive for those holding other currencies, thus reducing demand.
Gold futures for February 2016 agreement, at MCX, were trading at Rs. 25,463 per 10 grams, down by 0.54 per cent after opening at Rs. 25,515 against the last closing price of Rs. 25,602. It touched the intra-day low of Rs. 25,460 till the trading.
Further, a stronger $ reduced the appeal of gold as an alternative asset. Stronger greenback makes the Gold expensive for those holding other currencies, thus reducing demand.
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