Bullion tips : Gold futures rallied in the native market on yesterday as investors, observers & speculators booked fresh positions in the precious metal tracking a firm trend in the foreign countries market as poor US economic data reduced the odds of the US(United States) Federal Reserve changing interest rates in 2015, bolstering the lure for Gold as a store of value.
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Core US retail sales went down 0.3 per-cent in August month from July while producer prices sank 0.5 per-cent, the biggest drop since January, indicating weakness in biggest economy of world, bolstering the case for the world’s top central bank to wait longer before a maiden lift-off in borrowing costs in almost a decade.
Fed Governor Daniel Tarullo also said that he is not in favour of a rate increase current year. The Fed’s Beige Book report said that the US(United States) economy grew at a modest pace with little inflation from mid-August to October months as a stronger dollar weighed on manufacturing & tourism.
A weaker dollar also boosted the appeal of Gold as an alternative investment. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering requirement. Gold futures may extend gains today on delayed Fed rate tightening hopes while traders will eye a flurry of US(United States) data including jobless claims, consumer prices, New York & Philadelphia manufacturing and Fed members’ speeches.
At the MCX, December 2015 contract for Gold futures closed at Rs 27,206 per 10 gms, up by 0.84 per-cent after opening at Rs 27,108, in against to the previous closing price of Rs 26,979. It reached the intra-day high of Rs 27,290.
Fed Governor Daniel Tarullo also said that he is not in favour of a rate increase current year. The Fed’s Beige Book report said that the US(United States) economy grew at a modest pace with little inflation from mid-August to October months as a stronger dollar weighed on manufacturing & tourism.
A weaker dollar also boosted the appeal of Gold as an alternative investment. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering requirement. Gold futures may extend gains today on delayed Fed rate tightening hopes while traders will eye a flurry of US(United States) data including jobless claims, consumer prices, New York & Philadelphia manufacturing and Fed members’ speeches.
At the MCX, December 2015 contract for Gold futures closed at Rs 27,206 per 10 gms, up by 0.84 per-cent after opening at Rs 27,108, in against to the previous closing price of Rs 26,979. It reached the intra-day high of Rs 27,290.
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