MCX Gold Tips | Gold futures retreated sharply in the Asian market on Friday as investors and speculators exited positions in the precious metal tracking a weak trend in the Global market as rising speculation that the US Federal Reserve may raise borrowing costs for the 1st time in nearly a decade next month curbed the lure for the bullion as a store of value.
The focus of traders is on the US non-farm payrolls data set for release this week which may signal further strength in the labor market of the world’s largest economy, bolstering the case for the US Federal Reserve to raise interest rates for the first time since 2006.
The US economy probably added close to 200,000 jobs in November, following a 271,000 addition in Oct, the biggest in 2015, while the jobless rate likely held at 5 per cent, analysts’ estimates show.
All eyes are also on the European Central Bank (ECB) which this week may announce fresh stimulus including bolstering its 1.1 trillion euro bond purchasing program or cutting its deposit rate further.
A stronger dollar also curbed the appeal of the yellow metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Bullion may extend losses today as traders resort to a cautious approach ahead of US pending home sales data today.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,059 per 10 gram, down by 0.88 per cent after opening at Rs 25,244, against the previous closing price of Rs 25,281. It touched the intra-day low of Rs 24,965.
The focus of traders is on the US non-farm payrolls data set for release this week which may signal further strength in the labor market of the world’s largest economy, bolstering the case for the US Federal Reserve to raise interest rates for the first time since 2006.
The US economy probably added close to 200,000 jobs in November, following a 271,000 addition in Oct, the biggest in 2015, while the jobless rate likely held at 5 per cent, analysts’ estimates show.
All eyes are also on the European Central Bank (ECB) which this week may announce fresh stimulus including bolstering its 1.1 trillion euro bond purchasing program or cutting its deposit rate further.
A stronger dollar also curbed the appeal of the yellow metal as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Bullion may extend losses today as traders resort to a cautious approach ahead of US pending home sales data today.
At the MCX, Gold futures for December 2015 contract closed at Rs 25,059 per 10 gram, down by 0.88 per cent after opening at Rs 25,244, against the previous closing price of Rs 25,281. It touched the intra-day low of Rs 24,965.
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