Gold
Bullion
Tips : On Friday, Gold prices ended lower in the domestic
market as optimistic US inflation data bolstered hawkish arguments
for an interest rate hike by the FR later present year. The US
Department of Labor's Bureau of Labor Statistics said its Consumer
Price Index (CPI) rose by 0.3 % in June on a monthly basis, in line
with consensus estimates. On a year-over-year basis, the CPI gained
0.1 % above analysts forecasts for a flat reading. A reading of Core
CPI, which strips out food & energy prices, provided even more
optimism for the hawks at the Fed in favor of an imminent rate
increase.
Moreover, the greenback rose, weakening the demand for the
bullion as an alternative asset. A higher dollar makes gold cheaper
for those holding other currencies, thus reducing gold demand. At the
MCX, August 2015 contract of Gold futures closed at Rs 25,498 per 10
gms, 1.06 % down after opening at Rs 25,733, against the last closing
price of Rs 25,771. It touched the intra-day low of Rs 25,461 till
the closing.
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