Share market tips - Yesterday, Yellow metal posted impressive gains in the native market as investors and speculators scurried to the safety of Gold as a growing global gloom soured risk taking appetite, bolstering demand for safe haven assets.
At the time of manufacturing activity in the US extended at the slowest rate since May 2013 in August month 2015, that in China hit a three-year low and slowed in the Euro area, signaling worsening health of the global economy, a fact pointed-out by IMF Chief Christine Lagarde who warned that the world's economic outlook was looking much worse than 2 months ago.
Gold was also boosted by a weaker dollar which bolstered the demand for the bullion as an alternative asset. Weaker greenback makes Gold less expensive for those holding other currencies, thus bolstering demand.
Meanwhile, the focus remains on the timing of the Fed’s maiden interest rate hike since 2006 with Fed’s Boston President Eric Rosengren warranting a modest pace of rate tightening amidst subdued inflation and weak global growth, regardless of the timing of an initial rate increase.
October 2015 contract for Gold futures closed at Rs 26,833 per 10 gms, up by 0.57 per-cent after opening at Rs 26,770, as compared to its previous closing price of Rs 26,682. It reached the intra-day high of Rs 27,017.
At the time of manufacturing activity in the US extended at the slowest rate since May 2013 in August month 2015, that in China hit a three-year low and slowed in the Euro area, signaling worsening health of the global economy, a fact pointed-out by IMF Chief Christine Lagarde who warned that the world's economic outlook was looking much worse than 2 months ago.
Gold was also boosted by a weaker dollar which bolstered the demand for the bullion as an alternative asset. Weaker greenback makes Gold less expensive for those holding other currencies, thus bolstering demand.
Meanwhile, the focus remains on the timing of the Fed’s maiden interest rate hike since 2006 with Fed’s Boston President Eric Rosengren warranting a modest pace of rate tightening amidst subdued inflation and weak global growth, regardless of the timing of an initial rate increase.
October 2015 contract for Gold futures closed at Rs 26,833 per 10 gms, up by 0.57 per-cent after opening at Rs 26,770, as compared to its previous closing price of Rs 26,682. It reached the intra-day high of Rs 27,017.
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