Bullions Tips - Gold futures advanced in the domestic on Friday as a drop in oil prices renewed a flight to safe haven avenues such as the yellow metal.
Further, rising speculation that the US Federal Reserve may refrain from an interest rate hike when it meets next month for a policy decision also bolstered the lure for the bullion as a store of value.
US consumer prices were little changed in January from the previous month when they fell 0.1 per cent, signaling muted inflation in the world’s biggest economy, bolstering the case for the Fed to go easy on further interest rate hikes. However, core consumer prices which exclude food and fuel climbed the most in over four years, up by 0.3 per cent in January 2016 from the prior month.
The President of the US Federal Reserve Bank of Cleveland stressed that the US economy was still strong and that she expects the FOMC to continue on its path of gradual rate hikes. Gold may trade on a cautious note today as rising equities cap safe haven demand while traders eye US manufacturing data.
At the MCX, Gold futures for April 2016 contract closed at Rs 29,515 per 10 gram, up by 0.70 per cent after opening at Rs 29,386, against the previous closing price of Rs 29,309. It touched the intra-day high of Rs 29,638.
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