The Bullion closed little changed in the domestic market

The Bullion closed little changed in the domestic market on Wednesday tracking a third straight bearish finish in the overseas market as investors and speculators remained wary of booking fresh positions in the precious metal as a stronger dollar curbed the lure for Gold as an alternative asset.Stronger greenback makes Gold more expensive for those holding other currencies. The dollar spiked more than 1.3 per cent against a basket of key currencies after robust US durable goods orders data signaled the fastening recovery in the world’s biggest economy, boosting the appeal of the country’s assets.
 

However, Gold received support from comments made by a top US Federal Reserve official who signaled a reduced likelihood of the world’s top central bank raising interest rates in September, bolstering the appeal for Gold as a store of value. Federal Reserve Bank of New York President William Dudley said that the case for September rate tightening has become less compelling in light of the global financial turmoil, even as he warned against reacting too much to short-term developments.
 

Gold’s flat finish came even as markets in China marked their biggest five-day slump since 1996, a sign that the metal hasn’t benefited much from its safe haven status.
 

Gold may trade cautious today ahead of revised US Q2 GDP data which may show that the economy grew more than earlier anticipated last quarter.
 

At the MCX, Gold futures for October 2015 contract closed at Rs 26,741 per 10 gram, unchanged after opening at Rs 26,712, against the previous closing price of Rs 26,740. It touched the intra-day high of Rs 26,825.

 

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