Monday, January 11, 2016

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Gold Updates - Yellow Metal loses Sheen On Upbeat US jobs Data


http://www.researchvia.com/bullions-pack/
Gold Updates - Gold futures retreated in the domestic and overseas market on Friday as investors and speculators exited positions in the precious metal as a blockbuster December US jobs report which showed that employers added nearly 300K jobs while the unemployment rate remained at a seven-year low, signaled a pickup in the labour market recovery in the world’s biggest economy , bolstering the case for the US Federal Reserve to continue tightening interest rates this year, after a maiden lift-off since 2006 last month, curbing the lure for Gold as a store of value.
American employers added 292,000 jobs in December, following an upwardly revised 252,000 gain in November.
 
A stronger dollar eroded the demand for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
 
However, the losses in the yellow metal were limited by safe haven demand for the bullion amidst lingering worries over China as an accelerated depreciation of the Yuan signaled a worsening slowdown in the world’s second biggest economy. A plunge in equities as Wall Street capped off its worst week since 2011 bolstered the appeal of Gold as an alternative asset.
 
Gold futures may rebound today as a slide in equities amidst fresh fears over China spurs safe haven demand.
 
At the MCX, Gold futures for February 2016 contract is trading at Rs 25,982 per 10 gram, down by 0.45 per cent after opening at Rs 26,022, against the previous closing price of Rs 26,100. It touched the intra-day low of Rs 25,770.

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