Gold futures Ended With Slim losses in the Domestic Market

Bullions tips - Gold futures ended with slim losses in the domestic market on Tuesday as investors and speculators resorted to profit booking in the precious metal, at existing levels, after a stellar rally in the previous session when prices rose over 3 per cent as heightened worries over global economic growth bolstered gold’s safe haven appeal.

Gold Bulls have been resurgent in recent sessions as plunging global equities and a worsening oil rout bolstered the investment appeal of the bullion.

An appreciation in the rupee against the dollar more than offset the gains witnessed in the precious metal in the overseas market. Stronger rupee against the greenback tends to exert upward pressure on domestic bullion prices.

Gold futures rose in the overseas market on Tuesday as falling oil prices fueled an exit from equities, forcing investors to seek shelter in the safety of the yellow metal. Wall Street ended lower on Tuesday with benchmark S&P 500 languishing near the lowest level since April 2014 with the Nasdaq Composite on the cusp of a bear market.

The focus has now shifted to Fed Chair Janet Yellen’s testimony to the Congress on Wednesday in which she may offer some cues over when the Fed is likely to raise interest rates next following a maiden lift-off in borrowing costs in almost a decade in December.

Gold futures may trade on a cautious note today as traders eye Yellen’s Congressional testimony.At the MCX, Gold futures for April 2016 contract closed at Rs 28,437 per 10 gram, down by 0.07 per cent after opening at Rs 28,421, against the previous closing price of Rs 28,458. It touched the intra-day low of Rs 28,190.