Bullions Tips - Gold futures ended lower in the domestic market on Wednesday as the strong gains in the yellow metal in recent sessions owing to its safe haven lure amidst an ongoing global financial turmoil, paved the way for profit booking in the bullion, by investors and speculators, at existing levels
The rally in the precious metal lost steam in the overseas market too, as prices dipped for the first time in six sessions, even as a weaker dollar bolstered the appeal of Gold as an alternative investment. Weaker greenback makes the bullion cheaper for those holding other currencies, thus lifting demand.
However, the losses in the bullion were capped by speculation that the US Federal Reserve may hold off further interest rate tightening amidst rising financial volatility, bolstering the lure for the precious metal as a store of value.
In her Congressional testimony, Fed Chair Janet Yellen on Wednesday signaled uncertainty over China’s growth prospects and an ongoing commodity rout, fears that have pushed global equities to the cusp of a bear market.
While Yellen reiterated that the Fed remains on track to gradually raise interest rates, she conceded that the world’s top central bank may have to alter its interest rate forecasts amidst a continued financial market rout, meaning that the Fed may delay further rate hikes.
Gold may bounce back today on hopes of a pushback in the timetable for further US Federal Reserve rate hikes.
At the MCX, Gold futures for April 2016 contract closed at Rs 28,317 per 10 gram, down by 0.42 per cent after opening at Rs 28,350, against the previous closing price of Rs 28,437. It touched the intra-day low of Rs 28,025.
However, the losses in the bullion were capped by speculation that the US Federal Reserve may hold off further interest rate tightening amidst rising financial volatility, bolstering the lure for the precious metal as a store of value.
In her Congressional testimony, Fed Chair Janet Yellen on Wednesday signaled uncertainty over China’s growth prospects and an ongoing commodity rout, fears that have pushed global equities to the cusp of a bear market.
While Yellen reiterated that the Fed remains on track to gradually raise interest rates, she conceded that the world’s top central bank may have to alter its interest rate forecasts amidst a continued financial market rout, meaning that the Fed may delay further rate hikes.
Gold may bounce back today on hopes of a pushback in the timetable for further US Federal Reserve rate hikes.
At the MCX, Gold futures for April 2016 contract closed at Rs 28,317 per 10 gram, down by 0.42 per cent after opening at Rs 28,350, against the previous closing price of Rs 28,437. It touched the intra-day low of Rs 28,025.
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