Bullions tips - Gold futures ended in the red in the domestic market on Monday as investors and speculators exited positions in the precious metal as traders resorted to a cautious approach ahead of the US Federal Reserve’s two-day policy meet next week in which the world’s top central bank is set to lift interest rates for the first time in almost a decade, curbing the lure for the bullion as a store of value. Gold, a non-interest bearing asset, tends to lose sheen during a rising interest rate scenario. Friday’s upbeat US jobs data which showed that the world’s biggest economy added over 200K workers in November and the jobless rate stayed at over a seven-year low has almost made a rate lift-off this month, a certainty. St. Louis Fed President James Bullard on Monday gave thumbs up to the US labour market recovery, which justified a maiden hike in borrowing costs since 2006, next week. A stronger dollar also dimmed the appeal of Gold as an alternative asset. Stronger greenback makes the bullion more expensive for those holding other currencies, thus dimming demand. Gold may trade on a cautious note today as traders stay on the sidelines ahead of next week’s Fed meet. At the MCX, Gold futures for February 2016 contract closed at Rs 25,552 per 10 gram, down by 0.64 per cent after opening at Rs 25,710, against the previous closing price of Rs 25,715. It touched the intra-day low of Rs 25,512.
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