Free stock tips - Gold
futures closed low in the native market on yesterday amid speculation
that the US Federal Reserve may increase interest rates next month
for the first time since 2006, lowering the pull for the yellow metal
as a store of value.
World’s
top central bank leading official warned that monetary tightening in
September was almost a done deal as the economy displays signs of
strengthening.
Federal
Reserve Atlanta Bank President Dennis Lockhart, a voting member on
the FOMC told the Wall Street Journal that the Fed was almost ready
to hike borrowing costs as he signaled that only a considerable
deterioration in economic data would prevent him from tightening
rates in September.
A
stronger dollar cut the demand for Gold as an alternative asset.
Stronger greenback makes Gold more expensive for those holding other
currencies, thus dimming demand.
Gold
may extend losses today as investors stay on the sidelines ahead of
US private sector payrolls data which may raise calls for tightening
policy rates in the US.
At
the MCX, Gold futures for August 2015 contract closed at Rs 24,675
per 10 gram, down by 0.35 per cent after opening at Rs 24,610, in
against with previous closing price of Rs 24,761. It touched the
intra-day low of Rs 24,570.
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