MCX GOLD TIPS | Bullion futures were trading in the red during noon trade in the domestic market on Thursday as investors and speculators stuck to a cautious tone ahead of the policy meet of the European Central Bank (ECB) in which it may decide to bolster its 1.1 trillion euro bond buying program or reduce its deposit rate to support the recovery in the 19-member Euro area economy. Gold, a hedge against the inflationary risk of monetary stimulus, will benefit from further monetary easing by the ECB.
However, speculation that the Fed may raise interest rate this month after Fed Chair Janet Yellen on Wednesday stressed that the world’s largest economy is ready for higher borrowing costs, while a bullish US private payrolls report for Nov also bolstered the case for policy tightening, curbed the lure for the bullion as a store of value.
At the MCX, Gold futures for Dec, 2015 contract is trading at Rs 24,806 per 10 gram, down by 0.14 per cent after opening at Rs 24,804, against the previous closing price of Rs 24,840. It touched the intra-day low of Rs 24,799. (At 12:23 PM).
However, speculation that the Fed may raise interest rate this month after Fed Chair Janet Yellen on Wednesday stressed that the world’s largest economy is ready for higher borrowing costs, while a bullish US private payrolls report for Nov also bolstered the case for policy tightening, curbed the lure for the bullion as a store of value.
At the MCX, Gold futures for Dec, 2015 contract is trading at Rs 24,806 per 10 gram, down by 0.14 per cent after opening at Rs 24,804, against the previous closing price of Rs 24,840. It touched the intra-day low of Rs 24,799. (At 12:23 PM).
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