Gold futures Ended Down In the Domestic market

 

Bullions Tips - Gold futures ended down in the Domestic market on Wednesday as investors and speculators exited positions in the precious metal tracking weakness in the overseas market after Fed Chair Janet Yellen indicated that the world’s top central bank is on track to raise interest rates for the first time in almost a decade this month, curbing the lure for the bullion as a store of value.

Yellen stressed that the world’s biggest economy is ready for higher borrowing costs, while a bullish US private payrolls report for November which showed that the US private sector added most workers in five months also bolstered the case for policy tightening.Reinforcing confidence in US economic outlook, Yellen said that Fed policymakers are optimistic that the US economy is expanding at a strong enough pace to achieve the labour market improvement and the goal of higher inflation.

She also cautioned that waiting too long to exit the era of zero interest rates could force a hasty pace of tightening.Meanwhile, the US economy expanded at a modest pace for most of October and November driven by higher consumer spending, the Fed’s Beige Book survey showed.A stronger dollar curbed the appeal of Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.

Gold may extend losses today as traders stay cautious amid expectations of Fed policy tightening in December, and ahead of tomorrow’s US jobs data.At he MCX, Gold futures for December 2015 contract closed at Rs 24,840 per 10 gram, down by 0.62 per cent after opening at Rs 25,065, against the previous closing price of Rs 24,994. It touched the intra-day low of Rs 24,814.