Bullions Tips - Gold futures ended on a strong note in the domestic market on Tuesday as weakness in the Indian rupee which plummeted to over a 29-month low against the US dollar more than offset a plunge in the prices of the yellow metal in the overseas market.
Gold futures swung to their biggest single-day point loss in nearly a year in the international market on Tuesday as investors shunned safe haven assets in favour of high-yielding riskier assets amid bets that a potential stimulus boost from global central banks may bolster a global economic recovery, driving up risk taking appetite.
Safe haven appeal for the bullion ebbed as worries over China waned after upbeat lending data signaled a pickup in the world’s second biggest economy and amidst speculation that the Bank of Japan and the European Central Bank (ECB) may step up monetary easing to prop up growth.
Stronger dollar also curbed the lure for Gold as an alternative asset. Stronger greenback makes Gold more expensive for those holding other currencies, thus dimming demand.
Gold may suffer a renewed decline today as traders stay cautious ahead of the release of the FOMC minutes in which the US Fed may offer cues over the possible timing to raise interest rates further after a maiden lift-off in borrowing costs since 2006 in December.
At the MCX, Gold futures for April 2016 contract closed at Rs 28,899 per 10 gram, up by 0.73 per cent after opening at Rs 28,610, against the previous closing price of Rs 28,690. It touched the intra-day high of Rs 29,075.
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