Gold tracking the Biggest Rally in the Domestic Market on Wednesday

Gold futures advanced in the domestic market on Wednesday tracking the biggest rally in nearly two weeks overseas as a retreat in global equities amidst concerns over a fast faltering global economic recovery spurred the demand for safe haven assets such as the yellow metal.

Global stocks fell for a second straight day while the dollar erased a gain against a basket of ten global currencies, bolstering the lure for the bullion as an alternative asset.

An IMF report showed that central banks from Kazakhstan to Russia were boosting bullion holdings.

Weak US economic data with services falling back into contraction in February and sales of new homes dropping more than forecast in January upped bets that the US Federal Reserve may push back the timetable for hiking interest rates further following a maiden lift-off in almost a decade in December, bolstering the lure for Gold as a store of value.

Gold may trade on a cautious note today ahead of US jobless claims and durable goods orders data.

At the MCX, Gold futures for April 2016 contract closed at Rs 29,554 per 10 gram, up by 0.86 per cent after opening at Rs 29,403, against the previous closing price of Rs 29,302. It touched the intra-day high of Rs 29,936.

 

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