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| Bullion tips |
Bullion tips : Gold futures remained in bear terrain in the native market on yesterday as investors, observers and speculators exited positions in the precious metal tracking weakness in overseas markets as a stronger dollar cut the requirement for Gold as an alternative asset.
Stronger greenback makes the bullion more expensive for those holding other currencies, thus dimming demand.
The dollar boosted in against with the basket of key currencies amid speculation that the US (United States) Federal Reserve which maintained status quo on interest rates current month, may move later present year, and raise borrowing costs for the first time in almost a decade, taking toll on dollar-denominated commodities and sapping the lure for the yellow metal as a store of value.
Atlanta Fed President Dennis Lockhart warned that a rate hike may happen this year, amidst solid improvement in the world’s biggest economy and the country’s labour markets.
Gold may bounced back today as a sharp sell-off in global equities amid bleak China factory data bolsters the safe haven lure for the bullion.
At the MCX, October 2015 contract for Gold futures closed at Rs 26,238 per 10 gms, down by 0.41 per cent after opening at Rs 26,319, against the previous closing price of Rs 26,345. It reached the intra-day low of Rs 26,181.
Stronger greenback makes the bullion more expensive for those holding other currencies, thus dimming demand.
The dollar boosted in against with the basket of key currencies amid speculation that the US (United States) Federal Reserve which maintained status quo on interest rates current month, may move later present year, and raise borrowing costs for the first time in almost a decade, taking toll on dollar-denominated commodities and sapping the lure for the yellow metal as a store of value.
Atlanta Fed President Dennis Lockhart warned that a rate hike may happen this year, amidst solid improvement in the world’s biggest economy and the country’s labour markets.
Gold may bounced back today as a sharp sell-off in global equities amid bleak China factory data bolsters the safe haven lure for the bullion.
At the MCX, October 2015 contract for Gold futures closed at Rs 26,238 per 10 gms, down by 0.41 per cent after opening at Rs 26,319, against the previous closing price of Rs 26,345. It reached the intra-day low of Rs 26,181.
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