Bullion tips - Gold futures closed on a bearish trend in the native market on Thursday this week as traders erred on the side of caution ahead of the conclusion of the US Fed Reserve’s 2 –day monetary policy meet in which the world’s top-most central bank was set to choose whether to hike interest rates for the 1st time in almost a decade.Gold, a non-interest bearing asset tends to loss its sheen at the time of a rising interest rate scenario.While a drop in jobless claims in the US(United States) to the lowest level in 2 months last week signaled strong progress in the labour market of the world’s largest economy, inflation remains soft with consumer prices falling 0.1 per-cent in August 2015 from the preceding month, complicating the task of Fed policymakers as they seek to terminate at the zero interest rate policy stance.
Gold futures may rally today as the Fed held interest rates unchanged near zero amid concerns that a worsening global economic outlook may restrain growth in the US economy and suppress already weak inflation, strengthening, the appeal of the yellow metal as a store of value.
At the MCX, October 2015 contract for Gold futures closed at Rs 26,168 per 10 gms, down by 0.47 per-cent after opening at Rs 26,208, against the last closing price of 26,291. It reached the intra-day low of Rs 26,136.
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