Gold futures ended lower in the domestic market Wednesday as investors
and speculators cut risky bets in the yellow metal amidst caution ahead
of a flurry of US data including August private sector payrolls, July
factory orders and Fed Beige Book survey which may offer latest cues
over the health of the world’s biggest economy, hence shaping the timing
of a maiden US interest rate lift-off since 2006. A stronger dollar cut
the demand for Gold as an alternative asset. Stronger greenback makes
Gold more expensive for those holding other currencies, thus dimming
demand. Boston Federal Reserve President Eric Rosengren said that the
subdued pace of inflation and weak global growth have justified the case
for slow pace of rate tightening regardless of when the initial rate
hike takes place. At the MCX, Gold futures for October 2015 contract
closed at Rs 26,629 per 10 gram, down by 0.76 per cent after opening at
Rs 26,800, against the previous closing price of Rs 26,833. It touched
the intra-day low of Rs 26,609.
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