COMMODITY TRADING TIPS: The yellow metal was high in demand on Thursday as heightened geopolitical tensions and the China Bear Bug forced investors to turn risk averse and seek shelter in the safety of the yellow metal, pushing up domestic Gold futures by over 1 per cent while prices hit a nine-week high in the overseas market.
China’s move to weaken its currency for an eighth day running, and that too, to the lowest level since March 2011 stocked further concerns over the health of the world’s second largest economy, pushing global financial markets into a tailspin, bolstering the safe haven appeal of the bullion.
Weakness in global equities as markets from Asia & Europe to US crashed; bolstered the lure for gold as an alternative asset. Trading in China’s stock bourses was suspended for a second time this week after the benchmark index slid 7%, triggering an automatic circuit breaker, as officials accelerated the depreciation of the Yuan.
Wall Street plunged on Thursday with benchmark S&P 500 marking its worst-ever four-day start to a year as the China rout spread across the globe, wiping out more than USD 2 trillion from global equities this year with billionaire George Soros warning that a bigger crisis could be in the offing. The Dow Jones Industrial Average plunged 2.32 per cent; the Nasdaq Composite dropped 3.03 per cent while S&P 500 fell 2.37 per cent.
A weaker dollar also bolstered the lure for the Gold as an alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand.
Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East due to the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.
Bullion may trade on a cautious note today ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, dimming the lure for Gold as a store of value.
At the MCX, Gold futures for Feb 2016 contract is trading at Rs 26,100 per 10 gram, up by 1.39 per cent after opening at Rs 25,800, against the previous closing price of Rs 25,741. It touched the intra-day high of Rs 26,123.
China’s move to weaken its currency for an eighth day running, and that too, to the lowest level since March 2011 stocked further concerns over the health of the world’s second largest economy, pushing global financial markets into a tailspin, bolstering the safe haven appeal of the bullion.
Weakness in global equities as markets from Asia & Europe to US crashed; bolstered the lure for gold as an alternative asset. Trading in China’s stock bourses was suspended for a second time this week after the benchmark index slid 7%, triggering an automatic circuit breaker, as officials accelerated the depreciation of the Yuan.
Wall Street plunged on Thursday with benchmark S&P 500 marking its worst-ever four-day start to a year as the China rout spread across the globe, wiping out more than USD 2 trillion from global equities this year with billionaire George Soros warning that a bigger crisis could be in the offing. The Dow Jones Industrial Average plunged 2.32 per cent; the Nasdaq Composite dropped 3.03 per cent while S&P 500 fell 2.37 per cent.
A weaker dollar also bolstered the lure for the Gold as an alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand.
Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East due to the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.
Bullion may trade on a cautious note today ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, dimming the lure for Gold as a store of value.
At the MCX, Gold futures for Feb 2016 contract is trading at Rs 26,100 per 10 gram, up by 1.39 per cent after opening at Rs 25,800, against the previous closing price of Rs 25,741. It touched the intra-day high of Rs 26,123.
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