Gold update - Gold prices closed lower in the domestic market on Thursday with the pace of future Federal Reserve rate hikes now the focus after Chief Janet Yellen suggested a "gradual path forward. The Federal Open Market Committee (FOMC) lifted the Fed Funds Rate by 25 basis points to a range between 0.25 and 0.50 per cent. A rate-hike is widely viewed as bearish for gold, which is not attached to interest rates or dividends and struggles to compete with high-yield bearing assets. Further, a stronger Dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand. At the MCX, Gold futures for February 2016 contract closed at Rs 24,841 per 10 gram, down by 2.46 per cent after opening at Rs 25,370, against the previous closing price of Rs 25,468. It touched the intra-day low of Rs 24,740.
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