Commodity updates - Gold futures closed lower in the domestic market on Thursday as investors and speculators exited positions in the precious metal amidst subdued demand for physical gold in the domestic spot market.Many traders stayed on the sidelines amidst the end of year, weighing on the yellow metal. Trading volumes were thin as most traders had already closed their books, and were awaiting the start of the New Year. The losses in the yellow metal were curbed by gains in Gold in the overseas market, led by short-covering even in the face of a stronger dollar, which tends to limit demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
A rebound in oil prices amidst a dip in US oil rig count this week eased concerns over deflationary pressures across the globe, bolstering the lure for gold, a hedge against rising prices, offering support to the precious metal.
Gold was also supported by speculation that the US Federal Reserve may raise interest rates at a gradual pace, supporting the bullion’s appeal as a store of value. A surge in US jobless claims signaled a slowing labour market recovery in the world’s biggest economy, bolstering the case for a measured pace of interest rate tightening.
Gold may trade on a lackluster note today amidst thin New Year trading volumes.
At the MCX, Gold futures for February 2016 contract closed at Rs 24,931 per 10 gram, down by 0.20 per cent after opening at Rs 25,009, against the previous closing price of Rs 24,982. It touched the intra-day low of Rs 24,850.
Gold was also supported by speculation that the US Federal Reserve may raise interest rates at a gradual pace, supporting the bullion’s appeal as a store of value. A surge in US jobless claims signaled a slowing labour market recovery in the world’s biggest economy, bolstering the case for a measured pace of interest rate tightening.
Gold may trade on a lackluster note today amidst thin New Year trading volumes.
At the MCX, Gold futures for February 2016 contract closed at Rs 24,931 per 10 gram, down by 0.20 per cent after opening at Rs 25,009, against the previous closing price of Rs 24,982. It touched the intra-day low of Rs 24,850.
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