Gold Update - Gold prices rose by 0.09 % on Wednesday as consumer prices in China nudged a bit higher than expected, bolstering demand hopes.
In China, CPI rose 1.5 per % year-on-year, a tick higher than the 1.4 per cent seen and PPI fell 5.9 per cent, matching expectations. The higher consumer inflation will no doubt limit the room for the People's Bank of China to further cut interest rates. The PBOC last cut the benchmark one-year deposit rate to 1.5 per cent at the end of October.
Gold futures for Feb 2016 contract, at MCX, were trading at Rs. 25,548 per 10 grams, up by 0.09 per cent after opening at Rs. 25,530 against the closing price of Rs. 25,526. It touched the intra-day high of Rs. 25,576 till the trading.
Further, a weaker dollar raised the appeal of gold as an alternative asset. Weaker greenback makes the bullion cheaper for those holding other currencies, thus increasing demand.
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