Bullions Tips - Gold futures shed over 1 per cent in the domestic market on Friday tracking weakness in the overseas market as a stellar rally in the yellow metal in the previous session amidst bullion’s safe haven appeal, led to profit booking, by investors and speculators, in Gold, at existing levels.
Gold prices had risen by over 5 per cent on Thursday as worries over a faltering global economic recovery amidst a China slowdown, uncertainty over US interest rate outlook and tumbling oil prices spurred a flight to the safety of the precious metal.
The precious metal retreated in the overseas market as US equities regained momentum and oil prices bounced back, dimming the safe haven luster for Gold, while a stronger dollar curbed the appeal of the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Federal Reserve Bank of New York President William Dudley quelled speculation that the Fed may consider adopting negative interest rates, stressing that the US economy is in strong shape to withstand global financial market volatility.
Gold may extend losses today as a strong performance of equities in Asia excluding China eased concerns over the global economy, dimming the safe haven luster for Gold.
At the MCX, Gold futures for April 2016 contract closed at Rs 29,386 per 10 gram, down by 1.36 per cent after opening at Rs 29,600, against the previous closing price of Rs 29,791. It touched the intra-day low of Rs 29,340.
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