Gold futures plunged 1.7 per cent in the domestic market on Thursday as investors and speculators exited positions in the precious metal as renewed speculation of a Federal Reserve December interest rate hike soured the appetite for gold as a store of value.
A slowdown in US GDP growth failed to dampen speculation of a near-term Fed rate hike. While the world’s biggest economy grew at an annualized pace of 1.5 per cent in the September quarter following a 3.9 per cent rate in Q2, the data masked robust consumer and business spending and excluding inventories, the economy grew at a 3 per cent pace in Q3.
The Fed this week signaled that a December rate hike remained an option depending on the progress of the labour market recovery and inflation even as it downplayed the impact of global headwinds.
A weaker dollar which made gold cheaper for those holding other currencies had little effect on investor sentiment.
Holdings in the SPDR Trust, the world’s biggest bullion-backed exchange traded fund fell 0.17 per cent to 694.34 tons on Wednesday.
Gold may trade on a cautious note today as traders eye US consumer spending and consumer sentiment data.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,621 per 10 gram, down by 1.7 per cent after opening at Rs 27,040, against the previous closing price of Rs 27,073. It touched the intra-day low of Rs 26,605.
The Fed this week signaled that a December rate hike remained an option depending on the progress of the labour market recovery and inflation even as it downplayed the impact of global headwinds.
A weaker dollar which made gold cheaper for those holding other currencies had little effect on investor sentiment.
Holdings in the SPDR Trust, the world’s biggest bullion-backed exchange traded fund fell 0.17 per cent to 694.34 tons on Wednesday.
Gold may trade on a cautious note today as traders eye US consumer spending and consumer sentiment data.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,621 per 10 gram, down by 1.7 per cent after opening at Rs 27,040, against the previous closing price of Rs 27,073. It touched the intra-day low of Rs 26,605.
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