MCX GOLD TIPS: Gold futures advanced during noon trade in the domestic market on Thursday as China’s move to weaken its currency stocked further concerns over the health of the world’s second biggest economy, pushing global financial markets into a tailspin, bolstering the safe haven appeal of the yellow metal.
The People’s Bank of China on Thursday lowered the value of its currency by 0.51 per cent to 6.5646 against the US dollar, the weakest level since March 2011, raising fears that the slowdown in the country’s economy was more severe than previously thought.
The China currency move rattled stock markets across Asia with the Shanghai Composite falling over 7 per cent, triggering an automatic circuit breaker, leading to a trading suspension for the second time this week.
Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East amidst the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.
At the MCX, Gold futures for February 2016 contract is trading at Rs 26,005 per 10 gram, up by 1.03 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 26,021. (At 12:04 PM).
The People’s Bank of China on Thursday lowered the value of its currency by 0.51 per cent to 6.5646 against the US dollar, the weakest level since March 2011, raising fears that the slowdown in the country’s economy was more severe than previously thought.
The China currency move rattled stock markets across Asia with the Shanghai Composite falling over 7 per cent, triggering an automatic circuit breaker, leading to a trading suspension for the second time this week.
Heightened geopolitical tensions amidst fears of a fresh sectarian crisis in the Middle East amidst the Saudi-Iran diplomatic row, and North Korea’s successful testing of a hydrogen bomb also boosted safe haven inflows into the precious metal.
At the MCX, Gold futures for February 2016 contract is trading at Rs 26,005 per 10 gram, up by 1.03 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 26,021. (At 12:04 PM).
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