Bullions tips - Gold futures surged by more than 1 per cent in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend in the overseas market amid rising speculation that the US Federal Reserve may push back the timetable to raise interest rates further as widespread global financial market volatility, a slowdown in China and tepid inflation fears cloud US economic outlook, bolstering the lure for the bullion as a store of value.
Minutes from the Fed’s January meet showed that Fed policymakers were worried over the potential impact of global headwinds on the world’s biggest economy. Meanwhile, weak economic data showed a second straight dip in a US leading index in January and a continued contraction in Philadelphia manufacturing gauge also bolstered the case for delayed Fed rate tightening after an initial lift-off last December.
A renewed drop in equities with Wall Street snapping a three-day rally also bolstered the appeal of gold as an alternative asset. Gold may extend gains today as a retreat in equities amidst a fresh drop in oil prices boosts safe haven lure for the bullion.
At the MCX, Gold futures for April 2016 contract closed at Rs 29,309 per 10 gram, up by 1.46 per cent after opening at Rs 28,888, against the previous closing price of Rs 28,888. It touched the intra-day high of Rs 29,369.
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