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| Bullion tips |
Gold futures closed with slim losses in the native market on yesterday as bullion traders stuck to the sidelines ahead of the much anticipated two-day US Fed Reserve monetary policy meet on Dec 15-16, in which the world’s top central bank is almost certain to lift interest rates for the 1st time in almost a decade, dimming the lure for the precious metal as a store of value.
Last week’s upbeat jobs data which signaled the momentum in US labour market recovery strengthen the case for monetary tightening while most Fed officials have also release strong hints that the world’s leading central bank is all set to exit the era of zero interest rates.
Gold, a non-interest bearing asset loses sheen in a rising interest rate scenario.
Jumping in oil prices, which hit a 7-year low earlier this week dented gold’s appeal as an inflation hedge while concerns that demand from China, one of the largest bullion consumers in the world, may weaken early next year amidst a worsening low down, indicated by Tuesday’s tepid trade data, also weighed on the yellow metal.
Last week’s upbeat jobs data which signaled the momentum in US labour market recovery strengthen the case for monetary tightening while most Fed officials have also release strong hints that the world’s leading central bank is all set to exit the era of zero interest rates.
Gold, a non-interest bearing asset loses sheen in a rising interest rate scenario.
Jumping in oil prices, which hit a 7-year low earlier this week dented gold’s appeal as an inflation hedge while concerns that demand from China, one of the largest bullion consumers in the world, may weaken early next year amidst a worsening low down, indicated by Tuesday’s tepid trade data, also weighed on the yellow metal.
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