Bullion Tips & Updates - Gold futures closed on a bearish note in the native market on Friday last week as investors, speculators & observers stuck to a cautious stance ahead of the two-day Fed monetary policy meet on September month 16-17 as the world’s top-most central bank considers the timing to bring down the curtains on its zero interest rate policy.
Any signal by the FOMC to increase interest rates in the near-term will be negative for Gold, a non-interest bearing asset.
Weakness in the dollar in against with major peers, however, supported Gold’s appeal as an alternative asset, trimming losses in the precious metal. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering requirement.
Any signal by the FOMC to increase interest rates in the near-term will be negative for Gold, a non-interest bearing asset.
Weakness in the dollar in against with major peers, however, supported Gold’s appeal as an alternative asset, trimming losses in the precious metal. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering requirement.
Many experts believe that the Fed may refrain from a rate increase this week amidst the China induced mayhem in global financial markets.
US consumer sentiment tumbled in September while wholesale prices were little changed in August amidst lower fuel prices, bolstering the case for the Fed to delay tightening of borrowing costs at least in September. US producer prices were flat in August month, following a 0.2 per-cent rise in July.
Gold may rally today as a weaker dollar amidst hopes that the Fed may refrain from a lift-off in interest rates this week bolsters sentiment.
At the MCX, Gold futures for October 2015 contract closed at Rs 25,967 per 10 gram, down by 0.75 per cent after opening at Rs 26,179, as compared to its previous closing price of Rs 26,163. It reached the intra-day low of Rs 25,900.
US consumer sentiment tumbled in September while wholesale prices were little changed in August amidst lower fuel prices, bolstering the case for the Fed to delay tightening of borrowing costs at least in September. US producer prices were flat in August month, following a 0.2 per-cent rise in July.
Gold may rally today as a weaker dollar amidst hopes that the Fed may refrain from a lift-off in interest rates this week bolsters sentiment.
At the MCX, Gold futures for October 2015 contract closed at Rs 25,967 per 10 gram, down by 0.75 per cent after opening at Rs 26,179, as compared to its previous closing price of Rs 26,163. It reached the intra-day low of Rs 25,900.
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