Gold futures posted modest gains in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market as speculation that the US Federal Reserve may put off an interest rate hike until next year continued to boost the appetite for the bullion as a store of value.
US consumer prices fell in September led by a plunge in energy costs, signaling muted inflationary pressures in the world’s biggest economy, boosting the case for the Fed to hold off policy tightening until next year. US consumer prices dipped 0.2 per cent in September from the previous month when they declined 0.1 per cent.
At the same time, New York Federal Reserve Bank President William Dudley favoured a December rate hike if his forecast is met.
However, a stronger dollar trimmed the gains in the precious metal by curbing the lure for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold may trade on a cautious note today ahead of US factory output and consumer sentiment data.
At the MCX, Gold futures for December 2015 contract closed at Rs 27,257 per 10 gram, up by 0.19 per cent after opening at Rs 27,211, against the previous closing price of Rs 27,206. It touched the intra-day high of Rs 27,368.
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US consumer prices fell in September led by a plunge in energy costs, signaling muted inflationary pressures in the world’s biggest economy, boosting the case for the Fed to hold off policy tightening until next year. US consumer prices dipped 0.2 per cent in September from the previous month when they declined 0.1 per cent.
At the same time, New York Federal Reserve Bank President William Dudley favoured a December rate hike if his forecast is met.
However, a stronger dollar trimmed the gains in the precious metal by curbing the lure for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold may trade on a cautious note today ahead of US factory output and consumer sentiment data.
At the MCX, Gold futures for December 2015 contract closed at Rs 27,257 per 10 gram, up by 0.19 per cent after opening at Rs 27,211, against the previous closing price of Rs 27,206. It touched the intra-day high of Rs 27,368.
Read More - Bullions Tips
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