Gold futures extended gains in the domestic market on Monday as investors and speculators booked fresh positions in the precious metal tracking gains from the overseas market as bets that the US Federal Reserve may delay policy tightening in the world’s biggest economy amidst global headwinds bolstered the lure for the yellow metal as a store of value.
Chicago Federal Reserve Bank President Charles Evans on Monday urged the world’s top central bank to undertake a very gradual lift-off in US interest rates while preferring the initial hike in borrowing costs to begin in 2016.
FOMC Minutes released last Thursday also signaled that the Fed will be cautious in its approach to hiking interest rates for the first time in almost a decade, given slowing global growth and jitters from China that have hit global financial markets in recent months.
Gold, a non-interest bearing asset benefits from lower interest rates, which make the asset more attractive.
Gold has also been supported by safe haven buying amid Russian military action in Syria.
Gold may extend gains as dismal China trade data raises bets of further stimulus to prop up growth in the world’s second biggest economy.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,788 per 10 gram, up by 0.62 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,622. It touched the intra-day high of Rs 26,938. eade
Chicago Federal Reserve Bank President Charles Evans on Monday urged the world’s top central bank to undertake a very gradual lift-off in US interest rates while preferring the initial hike in borrowing costs to begin in 2016.
FOMC Minutes released last Thursday also signaled that the Fed will be cautious in its approach to hiking interest rates for the first time in almost a decade, given slowing global growth and jitters from China that have hit global financial markets in recent months.
Gold, a non-interest bearing asset benefits from lower interest rates, which make the asset more attractive.
Gold has also been supported by safe haven buying amid Russian military action in Syria.
Gold may extend gains as dismal China trade data raises bets of further stimulus to prop up growth in the world’s second biggest economy.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,788 per 10 gram, up by 0.62 per cent after opening at Rs 26,675, against the previous closing price of Rs 26,622. It touched the intra-day high of Rs 26,938. eade
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