Gold futures ended on a bearish note in the domestic market on Monday as investors and speculators exited positions in the expensive metal tracking a weak trend in the overseas market amidst rising speculation that the US Federal Reserve may raise borrowing costs for the first time since 2006, when it meets next in December, dimming the lure for Gold as a store of value.
Higher interest rates make the bullion, a non-interest bearing asset, less attractive for investors.
Recent labour and consumer data has signaled that the world’s biggest economy remains resilient in the face of a global slowdown, bolstering the case for policy tightening. Data on Monday showed that manufacturing continued to expand in the US in October while construction spending climbed a robust 0.6 per cent in September.
All eyes are on Friday’s October non-farm payrolls data with a pickup in job growth likely to push the case for a rate lift-off in December.
Gold may trade on a cautious note today as investors eye the key US factory orders data.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,409 per 10 gram, down by 0.34 per cent after opening at Rs 26,480, against the previous closing price of Rs 26,499. It touched the intra-day low of Rs 26,381.
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