Bullion Tips - The bullion posted mild gains on Friday, the first day of a brand New Year, amidst thin trading volume with global markets being closed on the occasion of New Year while most traders shied away from their trading desks as they were busy in New Year festivities.
Investors were eying the outlook for US interest rates with key US economic data due this week including the December factory & payrolls numbers, which will offer further cues over the health of the world’s biggest economy.
The Fed said last month that it will raise borrowing costs at a gradual pace, following the maiden lift-off in interest rates in almost a decade, in December.
A measured pace of interest rate tightening will boost the bullion, which is a non-interest bearing asset.
Gold may extend gains today as rising tensions in the Middle East, as Saudi Arabia severed diplomatic ties with Iran after an attack on its embassy in Tehran to protest the Saudis’ execution of a prominent Shiite cleric, bolsters the safe haven appeal of the yellow metal.
At the MCX, Gold futures for February 2016 contract is trading at Rs 24,962 per 10 gram, up by 0.12 per cent after opening at Rs 24,913, against the previous closing price of Rs 24,931. It touched the intra-day high of Rs 25,039.
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