Gold futures soared by more than 1 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the precious metal as the Fed held interest rates unchanged near zero amid concerns that a worsening global economic outlook may restrain growth in the US economy and suppress already weak inflation, bolstering the lure for the bullion as a store of value.
Fed Chair Janet Yellen stressed that global developments overshadowed indications of strong progress in the world’s biggest economy.
The Fed said that it needed to see "some further improvement in the labour market," and be "reasonably confident" that inflation will rise to targeted levels before hiking rates.
A delay in policy tightening in the US is bullish for Gold, a non-interest bearing asset.
Gold may succumb to a sell-off today after three officials from the Fed over the weekend stressed that rate tightening was warranted this year amidst falling US unemployment and robust economic expansion which is likely to outweigh jitters from slower global growth and financial market turbulence.
At the MCX, Gold futures for October 2015 contract closed at Rs 26,469 per 10 gram, up by 1.15 per cent after opening at Rs 26,350, against the previous closing price of Rs 26,168. It touched the intra-day high of Rs 26,590.
Fed Chair Janet Yellen stressed that global developments overshadowed indications of strong progress in the world’s biggest economy.
The Fed said that it needed to see "some further improvement in the labour market," and be "reasonably confident" that inflation will rise to targeted levels before hiking rates.
A delay in policy tightening in the US is bullish for Gold, a non-interest bearing asset.
Gold may succumb to a sell-off today after three officials from the Fed over the weekend stressed that rate tightening was warranted this year amidst falling US unemployment and robust economic expansion which is likely to outweigh jitters from slower global growth and financial market turbulence.
At the MCX, Gold futures for October 2015 contract closed at Rs 26,469 per 10 gram, up by 1.15 per cent after opening at Rs 26,350, against the previous closing price of Rs 26,168. It touched the intra-day high of Rs 26,590.
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