Bullion tips : Gold futures logged slim gains in the native market on yesterday as speculators & investors looked ahead to the US Fed Reserve’s 2-day meet this week in which the world’s top central bank may offer some cues over when it plans to hike interest rates in the US for the first time in almost a decade.However, the world’s top central bank isn’t estimated to increase interest rates just yet amidst below par inflation and threats to US(United States) economic outlook from a struggling world wide economy.
Data which showed a plunge in new home sales to a ten-month low in Sep signaled concerns over the health of the world’s largest economy, weakening the case for a rate lift-off by the Fed in present week.
Gold, a hedge against the inflationary risk of monetary stimulus was supported by fresh stimulus from China which cut interest rates for the sixth time since November and lowered the amount lenders must set aside as reserves, in a bid to help stem a slowdown in the world’s second biggest economy.
In the meantime, a weaker dollar which increased the appeal of gold as an alternative asset by making the bullion cheaper for those holding other currencies, helped spur a rally in the yellow metal in the overseas market.
Gold futures may trade on a cautious note today as the Fed kicks off a two-day meet. At the MCX, December 2015 contract for Gold futures closed at Rs 26,823 per 10 gms, up by 0.05 per-cent after opening at Rs 26,834, in comparison to its previous closing price of Rs 26,809. It atained an intra-day high of Rs 26,927.
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