Gold futures ended lower in the domestic market on Friday as investors and speculators exited positions in the precious metal in the overseas market where the bullion dipped to a three-week low amid speculation that the US Federal Reserve may raise interest rates for the first time in almost a decade, at its next policy meet in December, dimming the lure for Gold as a store of value.
While the world’s top central bank held interest rates unchanged near zero last week, it sounded hawkish over policy tightening as it signaled that a rate hike remained an option in December as it played down the impact of global risks over the US economy.
Consumer sentiment in the US climbed last month, while household spending edged higher in September and Chicago PMI soared in October, signaling strength in the US economy, bolstering the case for policy tightening.
Gold received some support from a weaker dollar which bolstered the appeal of the bullion as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies.
Gold may trade on a cautious note today as traders eye the US manufacturing data for October which will offer more cues over the economy’s health.
At the MCX, Gold futures for December 2015 contract closed at Rs 26,499 per 10 gram, down by 0.46 per cent after opening at Rs 26,588, against the previous closing price of Rs 26,621. It touched the intra-day low of Rs 26,461.
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