Bullions Tips- Gold futures ended tad lower in the domestic market on Wednesday as investors shied away from booking fresh positions in the precious metal as a rally in equities amidst a rebound in oil prices dented the safe haven lure for the bullion.
Markets from Europe to the US jumped as oil prices were back to levels last seen at the start of the month, eroding the lure for gold as an alternative asset.However, hopes that the US Federal Reserve may push back the timetable for further monetary tightening in the world’s biggest economy supported the bullion’s appeal as a store of value.
Minutes from the Fed’s January meet underlined risks to the US economy stemming from falling commodity prices and a financial market rout, a sign that the central bank may go slow over further rate hikes.
However, an unexpected rise in US wholesale prices by 0.1 per cent in January signaled that inflation may drift closer to the Fed’s goal, making traders cautious over US interest rate outlook. Gold may extend a drop today as a return in global risk taking appetite eases safe haven lure.
At the MCX, Gold futures for April 2016 contract closed at Rs 28,888 per 10 gram, down by 0.04 per cent after opening at Rs 28,953, against the previous closing price of Rs 28,899. It touched the intra-day low of Rs 28,731.
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