Gold
Against the backdrop of worries over a near-term
Federal Researve rate hike, ebbing safe haven demand and a roaring
greenback, the yellow metal extended losses from a five-year low,
tanking nearly 2 % in the domestic market on Monday. Speculation that
the US Fed Reserve would raise interest rates for the 1st time since
2006, in the up-coming months as inflation shows signs of picking up
& the labour market improves, hurt Gold’s appeal as a store of
value, while firing up the dollar & hence curbing the lure for
the bullion as an alternative asset.Click Here For Bullion Tips
Stronger greenback makes Gold much expensive for
those holding other currencies, thus fading the demand. In the
meantime, easing fears over Greece also cut Gold’s secure haven
requirement as Greek banks opened following a three-week shut-down
while the country made a 2 billion euro repayment to the IMF. Gold
may script a small rebound today as steep losses in previous sessions
may trigger bargain buying in the metal.
At the MCX, Gold futures for August 2015 contract
closed at Rs 25,034 per 10 gms, 1.82 per cent down after opening at
Rs 25,475, against the preceding closing price of Rs 25,498. It
reached the intra-day low of Rs 24,904.
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